The Coin Street Community Builders' (CSCB) proposals for a new mixed-use development on London's South Bank have been approved by the secretary of state, Hazel Blears.

The Doon Street Scheme is a collaboration between architects Lifschutz Davidson Sandilands, CSCB, operator Greenwich Leisure and the Rambert Dance Company. The development team also included consultants Arup, Davis Langdon LLP, Nathaniel Lichfield and Partners and Montagu Evans.

The plans for the 144m (472sq ft) tall Doon Street Building, which will be built on a derelict site, includes a 25m, eight-lane swimming pool, a learner pool, a 120-station gym, two multi-use studios and a four-court sports hall. There will also be a creche, a café, a health suite and club room.

Iain Tuckett, group director of Coin Street Community Builders, said: "The scheme is not just about radically improving the environment of the South Bank but also delivering vital facilities which offer alternatives to those at risk of obesity, gang culture and unemployment." CSCB expects this new leisure centre will attract 576,000 visits a year.

The scheme will also include the development of a town square linked to Waterloo Bridge, 329 new flats and possibly a new university faculty building as well as three studios, designed by Allies & Morrison Architects, for the Rambert Dance Company.

The scheme has had a wealth of support, including Lambeth Council, the Southbank Centre, the Mayor of London and many leading architects, but the plans were opposed by English Heritage, which claimed the development would adversely impact the London skyline.

Westminster Council also had its objections based on the scheme detracting from the Westminster World Heritage Site, but these allegations were withdrawn before the plans went to public inquiry in February 2008.