The Royal Borough of Kingston upon Thames in London has granted planning approval to a £400m redevelopment of the Eden Walk Shopping Centre.
Plans submitted by British Land and the Universities Superannuation Scheme (USS) include 380 homes, office spaces, and a new shopping centre.
A cinema, public car parking, and public spaces are also included in the plans, as well as remodelling of the memorial gardens.
Kingston Council's cabinet member responsibile for regeneration David Cunningham said: "This development is a major boost for Kingston and its future prospects.
"Attracting over £400m of investment into our town centre marks a significant vote of confidence in the future direction of our borough and provides a regenerated new shopping centre as well as much needed housing.
"We will be working hard with the developer over the coming months to ensure they continue the very good work they have done on engaging with Kingston residents as they seek to build this scheme."
Located in the heart of Kingston upon Thames, the shopping centre offers 28 of the UK's retailers and cafes including M&S, Boots, Jigsaw, Sainsbury's and Heal's.
Eden Walk was opened in 1968 and extended in 1979. It was refurbished in 2010. The one-level centre has a 700-space multi-storey car park, including 21 disabled spaces.