The former 2-acre rundown light industrial trading estate at Farm Lane will now be transformed with 40 luxury Georgian-style town houses around a green square.
London Square will retain a listed ornate Edwardian arched entrance and railings to Farm Lane, currently in a poor state of repair.
Adam Lawrence, chief executive of London Square, said: “We are creating a new square for London, continuing the legacy of the capital and its historic squares.
“Our inspiration came from Wellington Square, just off the King’s Road in Chelsea. Work will start on site in late summer 2012 .
Less than two years after its launch, London Square now has seven sites in the capital, and a development pipeline worth £335m, delivering 500-plus homes.