Property firm Lend Lease has started construction of the first 500 new homes as part of the £1.5bn regeneration of Elephant & Castle in central London.
The project is being delivered by Lend Lease in partnership with Southwark Council in the UK.
Work has started on the 37-storey tower named One The Elephant, which will feature 284 new homes.
Lend Lease said it will start work on Trafalgar Place, a 235-unit development on the site of the former Heygate Estate, later this week.
Designed by Make Architects, the regeneration project will provide about 3,000 new homes, shops, restaurants and community facilities over the next 15 years.
Plans also feature landscaped areas including a new park, a new leisure centre for Southwark Council, and transport and infrastructure improvements.
Lend Lease will develop the homes and act as the main contractor, as well as provide funding for the project.
The first new homes are expected to be completed in the autumn of 2015.
Lend Lease project director Pascal Mittermaier said the new homes at One The Elephant and Trafalgar Place will be sustainable and energy efficient places to live in Britain and will showcase the latest innovations and building practices.
"With energy-efficient lighting, heating and water recovery systems, and better insulation and ventilation, the homes will be 30% more energy efficient than current regulations require and use 30% less water than the average London household," Mittermaier added.
As well as the regeneration of Elephant & Castle, Lend Lease is also delivering the International Quarter, a £2bn commercial district at Stratford City in the Olympic Park, which will feature 350 new homes.
Image: The 37-storey One The Elephant tower will feature 284 new homes. Photo: Courtesy of Lend Lease.