Lovell has been awarded a £25 million contract to develop two new housing schemes for Hackney council.
Work will take place at the former Alexandra National House where a mixed-use development of 42 homes for open market sale and 67 affordable, rented properties will be built by March 2014.
Construction will also start next month on 40 affordable homes at Shepherds Lane with work expected to be complete by March 2012.
Hackney council has enabled the development of the homes for sale on the Alexandra National House site in return for Lovell investing in the scheme by constructing 20 council-owned homes at the Shepherds Lane site, which will have a design and build value of approximately £3m.
Lovell has been working with the council on its borough housing modernisation programme over the past six years.