Hill Piling is currently completing foundation works for the 15-storey building ahead of Ardmore starting main construction work this summer.
The block will house 100 affordable apartments and is due for completion in June 2011.
Jeff Duggan, director of developer Groveworld said: “It’s great to see the area around City Road Basin in Islington coming to life again.
“This is a fantastic waterside location that makes the most of its position next to the historic Regent’s Canal. The commencement of building demonstrates that the masterplan for the area will be delivered, bringing significant benefits to the area and its residents.”
A much larger 30-storey tower of private apartments is part of the masterplan for the site.
The City Road job is the latest success for Ardmore following the restart of its £110m residential contract in Stratford, east London for Genesis Housing.
The contract wins have created a string of vacancies at Ardmore which boasts one of the largest directly-employed workforces in construction.
For the latest vacancies visit our Job Spy section here.