London focused residential property developer Telford Homes intends to start development works for a 22-storey residential building next year.
The firm has conditionally exchanged contracts for purchasing the site on Carmen Street in Poplar, E14, for more than £20m recently.
The mixed-use development will involve construction of 206 new homes and a nursery.
Planning consent for the project has already been acquired by Ballymore from Tower Hamlets Council 2013, reports The Construction Index.
Completion of the building is expected by 2019 and 2020.
The site is located nearby Langdon Park station, which is less than ten minutes distance from Canary Wharf on the DLR.
The area is expected to experience considerable development in the coming years, since Crossrail at Canary Wharf will be improving transport connections in Poplar.
Telford Homes expects to generate more than £80m in revenue from the planned project.
Telford Homes chief executive Jon Di-Stefano said: "This acquisition represents the first significant benefit of our recent £50m placing, which provides Telford Homes with additional flexibility to take advantage of competitive market opportunities.
"We are constantly reviewing potential sites, and having access to this capital has allowed us to move quickly to secure the Carmen Street site, which has the unexpected advantage of an existing planning consent.
"Poplar is an area we know well, where there is strong and proven demand for our homes, and we look forward to commencing this exciting development in 2016."