The £12.5 million contract will cover construction of 85 new homes for Metropolitan Housing Partnership subsidiary Clapham Park Homes.
The deal marks the start of a 10 year process to renew all the estate’s aging accommodation which near Brixton, Clapham and Streatham.
Under the project around 1,000 homes will be revamped with another 1,000 demolished and replaced with 2,500 flats and 66 houses.
The first phase is due to start on site in spring 2008. Work is due to last 16 months.