The 65-bedroom apartment block is being built in a disused area of Tower Hamlets where demolition of the existing buildings has taken place over the last 18 months.
The new block will be known as Tower Reach and is expected to be complete in May 2020.
Engie’s regeneration business (formerly Keepmoat Regeneration) has already been on site overseeing archaeological work and putting preparations in place.
Regional managing director Dan Germann said: “Considerable work has gone on behind the scenes to bring this project to fruition and we have been involved from day one. It has been a complex process as it required demolition work, but L&Q’s unwavering commitment to deliver much-needed new homes in Tower Hamlets is ultimately what got us to this place.
“Over the next two years, we look forward to building high quality new apartments for a full mix of needs, while offering local resident’s career and training prospects in a thriving industry. This is something that we do on all of our schemes across the UK and one of the key reasons we were appointed on this project.”
Engie’s regeneration business has previously worked with L&Q to build a care home in Essex, as well as delivering phases one and two of the Excalibur Estate Regeneration in Catford.