It will begin work on 70 new council homes and six for shared ownership in Hoxton shortly.
A further 40 flats for private sale will help to pay for the new council homes, along with 130 sq m of new retail space and improvements to the estate such as new lighting and roads.
The regeneration of the Colville Estate is taking place in several phases over a 15-year period, with the first phase, Bridport House, completed in 2011, delivering 41 new Council homes for social renting.
In July 2015 it was announced that Anthology had been appointed as the development partner for the third phase, to build 198 homes for private sale, which will also help pay for the new Council homes for social renting and shared ownership across the rest of the estate in the absence of any government funding.
The Phase 3 works will begin in parallel with those on Phase 2.
The regeneration of the Colville estate is part of a borough-wide, 18-site Council housebuilding programme which will deliver 2,760 new homes, over half of which will be for social renting and shared ownership.