Bouygues will construct 169 new affordable homes in north-west London through a PFI contract, after Brent Council secured over £140m-worth of private investment from Hyde Housing Group, Barclays Capital and Nord LB.
The scheme has also received £37m funding support from the Homes and Communities Agency.
It is the second phase of a housing construction programme which will deliver 384 homes in total.
Bouygues's UK business was also appointed for the first phase of the scheme in December 2008, which is being paid for by £80m of private funding.
Construction of phase two is expected to be completed by December 2012.