The former Royal Standard pub on the Rockingham Estate is to be redeveloped after Southwark Council agreed to sell the freehold of the site.
The council is currently the freeholder of the site and on Tuesday the borough's cabinet agreed to sell the freehold to the current leaseholder.
"The owner of that lease is eager to ... redevelop the site for new homes and retail," Cllr Fiona Colley told cabinet on Tuesday.
Cllr Colley added that the capital receipt from the sale will be "very much to our benefit" and explained that it will be used to help fund the council's housing investment programme.
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