Work on the redevelopment of the Dockland Settlement complex on Rotherhithe Street will begin “imminently” and is due for completion by the end of 2013, says Southwark Council.
The scheme includes 28 homes with five to be for social rent and four will have shared ownership status. The development will include new community and sports facilities.
“We are very pleased to be able to welcome a new sports facility in Southwark in this Olympic year,” said Cllr Veronica Ward, cabinet member for culture, leisure, sport and the Olympics.
“We look forward to delivering an exciting and inclusive sports and leisure programme together with the Dockland Settlements charity.”
Cllr Peter John, leader of the council, added: “Regeneration is about more than just building new homes, it’s about meeting the needs of the local community and enhancing local facilities.
“The new sports facility and the additional affordable housing stock will do that by creating new employment opportunities and getting young people involved in exciting sports programmes.”
The Dockland Settlements were established in the 19th century to improve welfare and recreation for the youth of dock areas. There are three Dockland Settlement centres at Stratford, the Isle of Dogs and Rotherhithe.
Dockland Settlements chief executive Lorraine Cavanagh said: “We have been working with local residents for the past two years and have now reached a point where a programme of activities can be put together in readiness for the opening.
“Dockland Settlement will continue to work to improve the quality of lives for local people through various programmes and partnerships and I welcome groups who would like to be part of this programme to still get in touch.”