It now plans to develop a 444-room student accommodation scheme at the Harper Road and Borough High Street site.
It is the second developer in a week to switch plans for private flats over to student rooms in the Capital.
Regal London has also reset its Devonshire Place housing scheme on the Old Kent Road for 900 student rooms and 220 affordable homes.
Architect Morris and Co has designed the Sellar scheme, which has just been submitted for planning. The project will be spread over an H-shaped footprint building rising from 5 to 11 storeys.
The student accommodation is split into two main types, studio rooms for single occupants and cluster rooms of up to 9 bedrooms with a shared living/kitchen dining room.
The client team consists of project manager and cost consultant Gardiner & Theobald, M&E engineers Skelly & Couch and structural and civil engineer Walsh.