The London Borough of Merton has approved the redevelopment of Rainbow Industrial Estate in Raynes Park.
The site currently consists of low-rise industrial units and open yard. It was valued at £10.5m in March 2015.
Workspace has secured mixed-use planning consent to replace the existing buildings with a redevelopment comprising 224 residential units, including a mix of townhouses, private apartments and 15% affordable housing, plus 37,000 square feet of new commercial and light industrial space.
Workspace chief executive Jamie Hopkins said: “The redevelopment will considerably increase the capital value of the site, reinforcing our ability to drive shareholder returns through active asset management.”