Carlyle Wednesday received approval to build a £1 billion ($1.6 billion) residential and office project on the south bank of the River Thames, making it the latest overseas investor to develop a prime chunk of London's real estate.

The US private-equity group will develop nine new buildings as part of the 1.4 million square foot project, including a planned 48-storey residential tower, a new public square and 25,000 square feet of retail space.