Workspace Group has sold part of its 11 acre Biscuit Factory development site in Bermondsey to Grosvenor Britain & Ireland for £51 million.
The Clements Road site, which used to house the Peek Freans biscuit factory, has planning permission for 800 new homes and 60,000 sq feet of new business space.
Workspace announced this week that it was selling the 7 acres of the site earmarked for the homes to Grosvenor, and that as part of the deal Grosvenor would construct a new commercial building on the land Workspace was retaining that would increase the amount of business space at the site to 270,000 sq feet.
Workspace chief executive Jamie Hopkins said the deal would result in a thriving residential and business location, providing Southwark with its largest hub for small and growing businesses.
“This partnership will deliver significant value for our shareholders and considerable benefit to the local community,” he said.
"London has the opportunity to become the entrepreneurial capital of the world.
“It is important that we continue to redevelop sites like this across London, that will attract people and businesses who are looking to live and work in dynamic locations with good transport links at the centre of the city."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched