Southwark Council has awarded Lend Lease detailed planning permission for the second phase of its £1.5bn regeneration of Elephant and Castle.
It approved plans for 593 new homes, including a 31-storey residential tower, and 43,000 sq ft of new retail space at Elephant Park on 3 December.
Developers aim to re-establish Elephant & Castle as a retail destination with plans for a new supermarket, a restaurant and up to nine high street and 13 independent shops.
New residential accommodation will be built around two garden squares. Some of the homes will be built in the 31-storey building, while others will be positioned above the new retail space.
It is the second phase of the Elephant Park masterplan, following the launch of 360 homes, known as South Gardens, earlier this year.
Lend Lease will build nearly 2,500 new homes on the site between now and 2025. Construction of phase two is due to begin in 2015.
Lend Lease’s project director for Elephant & Castle Rob Heasman said: “As we seek to re-establish Elephant & Castle as London’s most exciting new place to live, this latest phase of new homes and retail space adds to the considerable momentum we are now building.
“With our focus now very much on delivery, these 600 homes, together with the creation of a brand new local shopping street represent our biggest phase to date.”