Southwark Council’s planning committee narrowly voted in favour of the vast redevelopment scheme, which will employ 1,230 construction workers per year across the 10-year build.

The iconic shopping centre will be replaced with a new town centre style scheme which will form the heart of the wider Elephant & Castle regeneration scheme being delivered by Lend Lease.

Delancey has used Mace as construction adviser for the complex scheme, although formal procurement for the construction delivery partner on project has not yet started.

Part of the central shopping area

As well as over 170,000 sq ft of new shops and restaurants there will also be a 1,000 seat multi-screen cinema and a 500-audience capacity grass-roots cultural venue.

The scheme designed by Allies and and Morrison also includes several housing blocks providing for nearly 1,000 homes. There will also be a landmark building for the London College of Communication.

Full approval is subject to the completion of a Section 106 agreement and the Mayor of London nodding through the plan amid calls from protestors for greater social housing provision.

London College of Communications will get a new building (left), vacating a site to the west of the shopping centre to make way for new housing (front)

Cllr Johnson Situ, cabinet member for development, growth and planning, said: “This is a complex scheme that will create a vibrant, new town centre, which is a key part of the wider regeneration of Elephant and Castle bringing new homes, jobs and opportunities to the area. Investment in the area is essential to bring forward these benefits.

“The scheme also critically will provide an opportunity to improve both the Northern Line station, which TfL have stated is urgently needed with the station currently operating above its capacity, and National Rail station.”

Stafford Lancaster, Investment Director, Delancey: “Our proposals offer a once in a lifetime opportunity to deliver a new town centre for the area, with each of these elements dependent on being delivered together.

“This includes a modern transport system, and a commitment to maintaining the area’s unique and vibrant culture.

“The new town centre will include a range of high street and independent retailers, enhanced restaurant and leisure opportunities and much needed housing on a site where there is currently none.

“It also ensures the long term future of UAL’s London College of Communication at Elephant and Castle, and the relocation of the University’s core services to the area and the employment opportunities this will bring.”