Buckingham Palace Properties has secured planning permission for a new retail-led development at 123-151 Buckingham Palace Road, SW1.
The 84,000 sq ft scheme includes 12 shops, a supermarket and a restaurant.
A new bus waiting area for passengers was almost part of the proposals, which were last night given approval by Westminster city council.
Councillor Alastair Moss said: “By creating a new shopping destination, we can encourage more people to visit and stay within the area, instead of using it as a point of transit as often associated with large transport terminals.”
Work on the scheme will begin later this year.