Hutchison Whampoa has secured approval from Mayor of London Boris Johnson to construct about 3,500 new homes at Convoys Wharf site in Deptford, that has been derelict for 14 years.
The 40 acre Convoys Wharf site was once home to a royal dockyard founded in 1514 by Henry VIII.
It is also the site of the Sayes Court Garden and the boat yard where the Lenox warship was constructed.
A series of proposals to regenerate the Convoys Wharf site were stalled over the past ten years before they could be considered.
An application was submitted to Lewisham Council in May 2013, but the local authority was unable to consider it within the statutory 16-week period for planning applications of this nature, and it expired.
Johnson took on the role of the planning authority at the request of Hutchison Whampoa.
The Mayor granted planning approval subject to a Section 106 agreement, which requires City Hall planners to meet with Lewisham and Hutchison Whampoa to agree a workable, alternative scheme for Sayes Court Garden.
Johnson said that the developer must fund a feasibility study into the Build the Lenox project to produce clear options about how it can be incorporated into the regeneration scheme.
He also said that the developer should contribute towards the business case of whichever of these options is most feasible.
Hutchison Whampoa is also required to construct a community hub that will be connected to Sayes Court Garden.
Plans include a new primary school, 525 affordable homes, shops, restaurants, and a new riverside jetty park forming part of an increased area of public space.
Johnson said: "We need to build thousands of new homes in the capital and proposals to do that at Convoys Wharf have stalled for far too long."
"I am pleased that we have been able to work on a scheme that will have enormous social and economic benefits for local people while preserving the heritage aspects of the site."
Image: Mayor of London Boris Johnson. Photo: courtesy of the Greater London Authority.