The scheme is being delivered in partnership with Network Rail with support from Manchester City Council and Homes England.
Vinci is main contractor on the site adjacent to Manchester Victoria train station.
The first phase of the scheme is for 450,000 sq ft of residential development with construction expected to complete in 2023.
The New Victoria development will provide 520 new homes over two, 20 and 25-storey buildings, including 178 one-bed, 286 two-bed and 56 three-bed apartments.
Proposals are also underway to bring forward the second phase of the wider New Victoria scheme which will include a 150,000 sq ft eight-storey office building.
John Morgan, Chief Executive of Morgan Sindall Group, said: “We are pleased to have agreed our second major forward funded deal in recent weeks, which further reinforces our regeneration strategy.
“We look forward to working with our partners to deliver a transformational scheme on an underutilised site in the heart of Manchester’s city centre”.