The government has refused planning permission for the £300 million Minerva Ram Brewery redevelopment.
The controversial plan to build two giant towers has been scrapped after a month-long public inquiry, which saw campaigners voice concerns about the impact the Battersea scheme would have on the neighbouring community.
The scheme comprises of 1,036 apartments and 238,000 sq ft of retail, restaurant and other commercial accommodation.
Minerva chief executive Salmaan Hasan said: “We are naturally disappointed by the Secretary of State’s decision and remain committed to our Ram Brewery and Buckhold Road sites which represent a rare opportunity to regenerate Wandsworth Town Centre.
“However, the Secretary of State has given a positive response to many aspects of the scheme and given guidance as to what is likely to be acceptable.
“We will now consider the information and guidance in the Secretary of State’s response and review our options as we look to move the scheme forward.”
The Health and Safety Executive also advised Wandsworth Council against granting planning permission, particularly for the two towers, due to their proximity to the Wandsworth Gasholder station.
HSE’s Director of Hazardous Installations Gordon MacDonald said: “The proposed development site, which would have included 829 residential units, is very close to the Wandsworth Gasholder station. In the event of a major accident, it would have been difficult to evacuate people rapidly from the upper levels of the proposed very tall tower blocks.”