Lend Lease has started construction on the first of 500 new homes in the regeneration of Elephant & Castle.
Work has begun on the landmark 37-storey tower comprising 284 new homes, One The Elephant.
Trafalgar Place, a 235-unit development on the site of the former Heygate Estate, is due to begin later this week.
The developments are the latest step in the £1.5bn regeneration of Elephant & Castle, which is being delivered by Lend Lease in partnership with Southwark Council.
It is set to provide around 3,000 new homes as well as shops, restaurants, community facilities and public spaces over the next 15 years.
Lend Lease is delivering the regeneration using its integrated property model. As well as funding and developing the homes, it is also acting as the main contractor.
Lend Lease project director Pascal Mittermaier said: “Today is another decisive step in the continuing transformation of Elephant & Castle into one of the most vibrant, well-connected and desirable places to live in the capital.”
“The new homes at One The Elephant and Trafalgar Place will be some of the most sustainable and energy efficient places to live in Britain and will showcase the latest innovations and building practices.”
He added that the homes would incorporate sustainable technologies to make them 30 per cent more energy efficient than current regulations require and use 30 per cent less water than the average London household.
The first new homes are scheduled for completion in autumn 2015.
Leader of Southwark Council Peter John said: “We’ve been able to imagine the transformation of Elephant & Castle for some time, but it’s only now as work begins that local people will get a really clear picture of what a fantastic destination it is going to become.
“Work has already begun on our new leisure centre, and as we start to see new homes appear, our vision for Elephant & Castle will be there for all to see,” he added.
Lend Lease is also delivering the International Quarter, a new £2bn commercial district at Stratford City in the Olympic Park which will include 350 new homes.