The project involves the demolition of existing temporary residential accommodation to be replaced with a four-storey building fronting Willow Walk and Alscot Way.
The building will provide temporary accommodation in 54 bedrooms with shared kitchen and communal facilities. Another new four-storey building on Setchell Road will incorporate 21 council housing units.
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Balfour Beatty will also create a new street through the development site, with an open public space, car parking, cycle racks and refuse facilities.
As part of its commitment to supporting the communities in which it works, Balfour Beatty will provide five jobs for non-working Southwark residents, as well as training two workers from the local area to a minimum of NVQ Level 1.
Balfour Beatty's Neil Patterson said: "We are delighted to have been given the opportunity, at the start of this ambitious development programme, to work with Southwark Council to provide new quality homes for residents in the Borough."
Construction is expected to be complete by spring 2015.
(CD/JP)
