The scheme will create a new neighbourhood of 457 apartments alongside 100,000 sq ft of commercial space.

Designs by Assael Architecture include a 4,000 sq m raised podium to create open space for residents.

The 3.4 acre former soap and oil works site is located where the Bow Back Rivers and River Lea meet, close to Pudding Mill Lane DLR station in Stratford.

Construction work will start in August this year.

Adam Lawrence, Chief Executive of London Square, said: “Our joint venture with Peabody will provide a formidable combination, with Peabody’s outstanding reputation and track record for providing much-needed affordable homes in London, coupled with our experience for tackling complex sites to develop mixed use developments, transforming derelict and neglected areas of the capital.

“Vulcan Wharf will play a vital role in the regeneration plans for the wider area, creating a new neighbourhood where people will want to live, providing new jobs and stimulating the local economy.”

This is London Square’s fifth partnership with Peabody – currently working together on the Holloway Prison site and London Square Bermondsey, following successful collaborations on London Square sites at Streatham Hill and Caledonian Road.

Dick Mortimer, Executive Director for Development and Sales at Peabody said: “We are pleased to be partnering with London Square to be delivering more affordable homes for London.

“Vulcan Wharf is in a fantastic location where people want to live and will provide great quality new homes alongside new green space and connected cycle routes for the local community.”