The developer has an option to buy the currently derelict Algarve House for £8m.

Development Securities is hoping to buy additional land near the site before submitting a masterplan for an office-led scheme by next Autumn.

Development Director Julian Barwick said: “We see Southwark as a strong market for office development and the site is extremely well positioned being adjacent to Southwark underground and close to Waterloo.

“Our proposals for the site draw on our expertise in taking derelict or otherwise redundant land and creating value through a process of regeneration.”