Developer Lend Lease has formally signed an agreement with the London Borough of Southwark for its £1.5bn regeneration of the Elephant and Castle.
The plans include demolition of 1970s housing estates and construction of new homes, shops, and public spaces in a 15-year development programme.
A minimum of 25% of the new housing will be affordable.
Southwark said has included the Elephant & Castle shopping centre in the Lend Lease agreement and plans to bring forward its development as part of the outline planning application for the Heygate Estate.
Demolition work will begin on the Rodney Road housing blocks in October 2010, with planning consent for its redevelopment agreed by the end of the following year.
A planning agreement for the Heygate Estate is not expected until the end of 2013, with its demolition scheduled by the end of 2015.