The £350m regeneration scheme has already delivered 300 flats near East Croydon station.
McAlpine’s second bigger phase of the Morello Estate will provide a further 456 flats across three separate buildings.
A total of 338 flats will be built in two 25 storey towers, with a further 118 flats for shared ownership and social rent built in the adjacent 9-storey Cherry Orchard Gardens stepped complex.
The Morello Estate project will also includes 20,000 sq ft of retail and commercial floor space, new public realm and a new link bridge to East Croydon train station.
The Morello Estate will be funded by Mitsubishi Estate London and Menta and Cherry Orchard Gardens will be owned and operated by Clarion Housing Association.
Ian Cheung, managing director for Sir Robert McAlpine UK South, said: “We are delighted to have signed this contract and to have progressed to the start of construction, despite the challenges brought by the Covid-19 pandemic over the last six months.
“This is testament to the strength of the trusted relationship we have built with Menta Regeneration, the funding partners, and Gleeds, during the preconstruction phase.
“We look forward to delivering this exciting regeneration scheme which will connect to East Croydon train station and provide quality residential units for the end users.”
The development will be ready for occupation in 2023.