Under the £500m plan targeting mid-market housing Grosvenor will provide homes on a range of discounted market rents, reaching a wider spectrum of people.

The plan to develop a 12-acre former biscuit factory site has been designed by Kohn Pedersen Fox Associates and also includes a new 600-place secondary school at its heart, over 110,000 sq ft of new public spaces and almost 20,000 sq ft of new playspace.

Grosvenor is testing its latest proposals after two years of local interaction and discussion.

Craig McWilliam, Chief Executive of Grosvenor Britain & Ireland, said: “London’s housing shortage is too often creating polarised outcomes, with homes for the few who can afford to buy them, and those allocated social rented accommodation.

“We are sharing our ambitions in Bermondsey to meet the needs of many on low and middle incomes who are locked out of London’s housing market.

“We want to help create one of London’s greatest neighbourhoods for people of mixed incomes, backgrounds and life stages. We want to manage these rental homes for the long term, responding to changing needs and extending Bermondsey’s rich history at the heart of a growing, global city.”

A statement from developer Craigewan said: “On behalf of its client, St. John’s Wood Square Limited, Craigewan can confirm the appointment of Lendlease to provide advice during the detailed design phase of the development prior to the appointment of a main contractor.”

The 2.2ha site was the former home of the Royal Horse Artillery and will be transformed into luxury homes across eight blocks.

Construction work is scheduled to last for five-and-a-half years.

Greystar has acquired two plots of land from the Royal Mail for the scheme. 

The pre-construction deal will see Telford Homes assist Greystar in pursuing a detailed planning consent for the site before entering a full design and build contract to deliver the development for a fixed price.

The terms of the contract include regular payments during the course of construction and profit paid on practical completion so Telford will invest limited equity and no debt. 

Telford Homes said it “is not taking any sales or rental risk but the margin earned will account for full construction risk and therefore is in line with the group’s target margin for build to rent developments.

Jon Di-Stefano, Chief Executive of Telford Homes, said: “Telford Homes is becoming established as a significant developer of build to rent housing in London. 

“This increasing reputation is helping the Group to secure major opportunities such as this and we are looking forward to assisting Greystar and building a strong partnership with them.

“This development will represent a substantial increase in the Group’s build to rent portfolio alongside existing schemes with M&G Real Estate, L&Q and Folio London, part of Notting Hill Housing Group. 

“It is an exciting step for Telford Homes but it does not change our geographic focus when considering developments for open market sale. 

“The Board believes the Group’s skillset can be utilised to develop build to rent homes anywhere in London whilst still maintaining a strong pipeline of developments for individual buyers in non-prime London locations.”

Mark Allnutt, Managing Director Multifamily, Greystar added: “This will be without question central London’s most exciting rental community.

“There’s nothing comparable in the UK in terms of scale and resident amenity. 

“We believe that London is finally ready for a five-star rental experience and we’re proud to be bringing this to Nine Elms in partnership with Telford Homes, a housebuilder synonymous with quality.”

Lendlease will be main contractor on the job which is expected to cost around £350m to deliver.

Plans went in to Camden Council for approval this week.

The planning application describes the scheme as a “7-11 storey building for use as offices with ancillary staff facilities including a cafe, gym, pool, Multi Use Games Area, events centre and landscaped roof garden.”

The Google HQ building, designed by Heatherwick Studios and BIG, in collaboration with BDP, will be home to 4,000 Googlers on completion.

Neil Martin, Manging Director of Lendlease’s Construction business in Europe, said: “With our global construction experience, we are confident this will be as distinctive as everything else Google does.”

Linden Homes is putting in £90m alongside £10m from Lookers Volkswagen Battersea to build new apartments at 98 York Road.

The Podium development will also contain a new Lookers showroom which will occupy the ground three floors of the 20-storey building.

Construction is scheduled to start towards the end of this year.

Claire Gibbins, Sales and Marketing Director at Linden Homes South East, said: “Battersea is undergoing a huge transformation and is going to be a great place to live.

“As well as new homes, the area is going to benefit from new parks, leisure and cultural spaces plus extensions to the transport network including the Northern Line extension, which is due to complete in 2020.”