Work has begun on the Tuborg Building, destroying a section of the Mauleverer Road Mural.
In 2013, a planning application to building nine private houses on the site was rejected, but in February 2014 the developers successfully appealed against the decision.
Work began last week and already parts of the mural have been removed.
The mural was created in the 1980s by artist Jane Gifford.
It features images from Brockwell Park, as well a Caribbean beach view which was requested by a resident who wanted to see it when he looked out the window.