Plans for a £1.5bn transformation of Elephant and Castle, London, have been given the green light after the local council secured an agreement with Lend Lease.

Southwark Council backed the terms of a Regeneration Agreement with the property group to advance the regeneration scheme, which was first proposed more than a decade ago. The project will see the 1970s Heygate Estate demolished to make way for a new pedestrianised town centre and urban quarter over the next 15 years, which will feature improved leisure facilities and green space.

A global regeneration initiative set up by former US president Bill Clinton - the Clinton Climate Initiative - has already confirmed the Elephant and Castle to be one of its 16 founding projects across the world. Southwark Council leader Peter John said: "This agreement will mean the centre of this great world city will be pulled further south in to Southwark, with the economic and social benefits that this will bring.

"I am pleased that our discussions with Lend Lease have been so positive and we can now look forward to working cooperatively together to transform this important part of London." Dan Labbard, chief executive officer of Lend Lease (EMAA), added: "The opportunity to transform the area over the next fifteen years to provide a new focal point for London is a responsibility we take extremely seriously."