The Milroy Walk shopping precinct was closed to pedestrians this week as preliminary work on the redevelopment of King's Reach Tower gets under way.
Many of the shops – including the newsagents, dry cleaners and grocery store – closed in July whilst the Coffee Mill shut its doors for the last time in October.
Prestige Dry Cleaners is now operating a collection service from the nearby Kalmak Pharmacy.
Kalmak Pharmacy will remain open till next year when it moves to its new premises as part of the redevelopment. The HSBC Bank will also move to a new unit within the development.
Milroy Walk has been in a run-down state since IPC Media moved out of King's Reach Tower.
The developers say that their scheme will provide an "exciting and attractive new shopping area for local residents and workers" with 13 shops including a small supermarket.
CIT's development, which was approved by Southwark's planning committee in July 2011, has received £250 million of funding from a club of Middle Eastern banks led by ABC International Bank and Saudi-based Mohamed Al Subeaei & Sons Investment Company.
"This development represents a major step in the regeneration of the South Bank," said George Kyriacou, CIT managing director of development.
"We are delighted to have worked with funders from the Middle East to get this project to the point where we are ready to start on site."
The luxury flats will go on sale next year and it is anticipated that the project will be complete by the end of 2015.