Christies Fine Arts Warehouse in Nine Elms has been given the green light to be transformed into 510 homes.
The council has approved plans to replace the warehouse, in Nine Elms on the South Bank, with homes and a new ‘cultural space’.
Nine Elms is one of Europe's biggest regeneration programmes
The development will form part of the huge transformation taking place in the area which includes the new US embassy, Battersea Power Station and New Covent Garden Market.
Approval was given by the council to Bellway Homes last night to develop the 2.7acre site.
The current warehouse will be demolished and replaced with two new buildings which at the highest point would be 19 storeys.
The new blocks will be predominantly brick. There will be 1,352 square metres of shop space and 1,122 square metres of community space– some of which will be offered to not-for-profit cultural organsiations at 50 per cent of market rates.
Over 18,000 new homes and up to 25,000 jobs are expected for Nine Elms
Out of 510 homes just 76 will be set aside as affordable properties, while 114 will be offered to local people on extended tenancies of up to five years.
Bellway Homes have agreed to pay and additional £10m to Wandsworth Council to be spent in other areas on affordable housing and £9m will be contributed to extending the Northern Line to Nine Elms.
Planning applications committee chairman Sarah McDermott said: “This is great news for Nine Elms.
"We are seeing more and more warehousing and industrial land making way for new homes, jobs and cultural attractions that will bring the area to life.”