Seven years after it was first approved - and after several false starts - work is due to start before the end of the year on the construction of a 44-storey tower close to the Elephant & Castle's southern junction.
Initially approved in 2007, the tower has been designed by Rogers Stirk Harbour & Partners.
The scheme will be built on land originally bought by the Government to build key-worker housing.
The land eventually passed to City Hall control and in the summer of 2013 Mayor of London Boris Johnson announced an agreement with Essential Living to build the tower with hundreds of homes for long-term private rent.
That deal foundered and now the Mayor has teamed up with with developers Mace and Canadian residential and hospitality owner operators Realstar to bring the scheme to fruition.
The development will include 278 homes for private rent managed by Realstar whilst Peabody will be the landlord for 179 affordable homes for rent and shared ownership.
In September this year Southwark councillors approved a variation to the planning permission that will see the tower built seven metres taller than first proposed in order to accommodate a sprinkler system on each floor.
"I am delighted to be partnering with Ryan Prince and his team at Realstar, who have a wealth of experience delivering PRS (private rented sector) housing that can be applied here and there is a real synergy in our vision for the development," said David Grover, chief operating officer of Mace Investment.
"Since Mace was selected as the GLA's partner for Newington Butts, we have been working through the options for this complex project to deliver much needed housing for the capital.
"With our other housing partner, Peabody, we are now able to move forward and deliver an iconic piece of real estate, which will be a strong addition to the London skyline, reinforcing the capital's position as a major city in the world to live in and work."
Ryan Prince, vice chairman of Realstar Group International, said: "Renting is changing for the better in London and this is the latest example of the development of high quality privately rented accommodation in a landmark, central location.
"This tower property, which will form part of the wider regeneration of Elephant & Castle, will help to meet the growing demand for this type of accommodation in the capital and become a central part of our growing portfolio of high quality rented property in some of London's most sought-after areas.
"This agreement also paves the way for the launch of Realstar Living, a residential owner and operator, which will provide Londoners with even greater choice, convenience and flexibility in the rental market."
Work on the construction of the scheme is due to start at the end of this year with completion expected three years later.