Construction work starts this month on a two-year programme.
The new housing will be built in Wester Hailes in southwest Edinburgh, as part of a wider regeneration of the area. The development has secured grant funding of £3.7m from the City of Edinburgh Council in partnership with the Scottish government.
The homes will be built in two phases on a derelict brownfield site previously occupied by tower blocks that were demolished in the 1990s.
Designed by architect Cooper Cromar and developed by Places for People, the development will provide 40 three-bedroom townhouses with gardens and 143 one-, two-, three-bedroom flats arranged in four- and six-storey blocks.
Lovell won the contract as one of Places for People’s framework contractors. It recently completed an £8m, 93-home housing development for Places for People at West Gait in Edinburgh.