Southwark Council's planning committee has given its backing to proposals to build an 82-home development at the site of a TNT Express depot in Bermondsey.
The move paves the way for development to commence once the distribution-services firm’s lease expires on the 1970s warehouse building in Pages Walk in around two years time.
London & Regional Properties’ scheme will see the replacement of the current Marshall House building with four blocks of one-, two- and three-bed roomed flats.
As well as the buildings, which would be up to six storeys in height, the developers also propose the creation of a communal square and space for a children’s play area, an “ecology area” plus space for a communal garden or allotments.
Southwark said the agreement included Section 106 payments of some £565,000 to mitigate the effects of the development and that it would also attract a Community Infrastructure Levy contribution of £129,400 when the scheme’s affordable housing elements were taken into consideration.
A report to councillors recommended the proposals for approval, but accepted that the development would result in the loss of Class B commercial floorspace in the area, which is currently occupied by a viable business employing 83 staff from the site.
However it said: “The land is not designated in the development plan for any particular land use and is not in a location which is protected for Class B employment use.
"In the absence of any policy that seeks to protect employment uses on the application site, it would be difficult to justify why residential development would be inappropriate taking account of the pressing need for high quality new homes in the borough, including affordable housing.
“In terms of affordable housing, the applicant has demonstrated that 24% affordable provision, or 25% taking into account the wheelchair affordable units, is the maximum number of affordable units that can be delivered of which a large proportion would be two and three bedroom social rented units.
“This would contribute towards meeting much needed affordable family accommodation in the borough.
"The development would provide an adequate standard of accommodation for future occupiers.”
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched