Barking and Dagenham Borough Council in east London has chosen the French giant as its construction partner for the redevelopment of The Lintons, a former 1960s council housing block in Barking town centre.
Under the deal, 530 homes will be built with 250 earmarked for council residents. A further 210 will be sold on the open market. The remaining 70 will be shared ownership properties.
Planning for the first phase of the development, which includes 70 flats, a cafe and business centre in an 18-storey tower, was given approval by the London Thames Gateway Development Corporation in February. Work is set to start in June, with completion of this first phase in November 2009.
The site is a part of land due to be handed over to one of two Local Housing Companies to be set up by the council.
Barking & Dagenham is among 14 English councils selected to pilot the Local Housing Company proposals announced by the Government in last year’s Housing Green Paper.
A local housing company is a joint venture between the public and private sectors.
The council offers its surplus land and the private sector matches this with investment to deliver new homes.
Speaking at local authority regeneration funding summit SocInvest last week, Barking and Dagenham Council’s head of housing strategy and property services Ken Jones said the council had selected its joint venture partner and expected to incorporate its LHC by May.
A second LHC will be set up to deliver the 10,000-home Barking Riverside scheme.
The decision continues a relationship between Bouygues and the council that dates back to 2004 when the firm was chosen to deliver two schools under a £60 million deal. In 2006 it chose the company as its development partner for a library, retail and housing scheme in Dagenham Heathway.