The overall project will see a full redevelopment of the entire Ebury Bridge council housing estate in the London district of Pimlico.
The existing flats will be demolished – more than 300 of them – and 758 new ones built in their place. The first phase includes 216 new homes across two residential blocks.
Bouygues UK is set to start work later this year and, subject to planning approval, begin building new homes in 2021.
The contract notice for the Ebury Bridge Estate renewal project put the value of the first phase last year as £97m, with the complete project budgeted at £350m.
Bouygues UK is already working in Westminster to build housing, a sports hall and a community space as part of the council’s Church Street regeneration programme.
Westminster City Council deputy leader Melvyn Caplan said: “In partnership with the residents of Ebury Bridge, we’ve taken forward the renewal of the estate and the signing of this contract is a significant milestone in this journey. The much needed new homes built as part of the scheme will contribute to our target of 1,850 homes over the next three years.
“We want the Ebury Bridge renewal scheme to create a new high standard in estate regeneration and we’re looking forward to working with Bouygues UK in making this vision a reality.”