Work has finally started on the much-delayed Tribeca Square development at Elephant & Castle.
Approved in its current form in 2008, the Oakmayne Plaza development was bought by Delancey in February 2011 and given the name Tribeca Square.
The site – which sits between the Elephant & Castle Shopping Centre and the Heygate Estate – was formerly occupied by a car dealership and has been vacant for many years.
Work began on site this week with a ground-breaking ceremony on Thursday and the project is due for completion in 2016.
The scheme includes towers of 24, 18 and 16 storeys and will include 262 homes, a 272-bed student residence, a large Sainsbury's supermarket and a four-screen cinema.
Delancey says that the majority of homes will be offered for rent on tenancies of one, two or three years.
Controversially, the scheme includes no affordable housing and no in-lieu payment.
"Today's ground breaking marks an important milestone for both our development and the regeneration of Elephant & Castle," said Jamie Ritblat, CEO of Delancey.
"We are very excited to be involved in the on-going story of the area alongside our development partner Oakmayne, and hope to enliven and continue contributing to its vitality through a scheme which will provide jobs, new permanent homes and modern, purpose-built space for students to live."
Cllr Fiona Colley, Southwark's cabinet member for regeneration, said: "Across the Elephant, real change is happening, with work under way on a range of new homes, a stunning new leisure centre, and improved public spaces.
"I'm delighted that Delancey is now starting work on a project that will bring even more to the area, including a cinema, a new market square and much-needed high quality homes in the private sector rental market."