Notting Hill Housing has bought Southwark Council's former Manor Place Depot for £20 million.
The affordable-housing provider plans to redevelop the site in Occupation Road, Walworth, with around 250 homes and additional commercial space.
The Grade-II listed Baths Building will also be refurbished as part of the scheme.
Notting Hill Housing chief executive Kate Davies told Southwark Magazine that the acquisition was part of the provider‘s wider plans for the area.
“This purchase shows our commitment to the regeneration of Elephant and Castle and Southwark, where we will invest £250 million to provide 1,200 new homes over the next three years,” she said.
“We are some way off being able to present our ideas, but we look forward to working with Southwark Council and the local community to develop our plans.”
"We've already surpassed one degree of global warming," said Kristen Buida, manager of the London Climate Change Partnership.