A ceremony was held to symbolise the end of more than 40 years of waste land on prime real estate next to East Croydon station, as work began on the Ruskin Square development.

A ground breaking ceremony was held at the site neighbouring the station yesterday.

The first element of development, which will eventually see the creation of 625 homes, 100,000sq ft of shops, cafes and restaurants and 1.25m sq ft of grade A office space, is the building of a 22-storey tower comprising 161 homes.

Developer Stanhope and Schroders anticipate starting the construction of a speculative office development on the site in the second quarter of 2015.

Ian Mason, head of UK specialist funds at Schroder Property, said: “We look forward to working closely with Places for People, which has an excellent track record of creating aspirational homes in inspirational places.

“Today’s ground breaking is a further demonstration of Schroder’s long term commitment to this important development and regeneration of land which has been derelict for more than 40 years.”

Stanhope and Schroders secured outline planning permission in July 2011 for a Fosters and Partners master planned 2m sq ft development.

Mary Parsons, group director of placemaking and regeneration at Places for People, which is delivering the first phase of the building works, said: “It is fantastic to see construction now firmly under way, bringing this exciting new development one step closer.”

Croydon Council leader Councillor Tony Newman said: “The redevelopment of Ruskin Square has been long overdue, and for many visitors to Croydon, it is the first place they see.

“It is a fantastic location, thanks to the excellent transport links to central London and Gatwick from the neighbouring East Croydon station.

“The development will also include affordable housing, which this council is focused on delivering for Croydon residents.”