Clarion secured planning permission in January to bring back to life four empty blocks, with a mix of one to four-bedroom flats designed to match the needs of local residents.
This work will deliver 81 new social rented, sustainable homes, many of which will have balconies or terraces providing private outdoor space.
Durkan will start construction work in May.
The separate refurbishment element of Sutton Dwellings, which consists of 14 blocks right in the heart of the Royal Borough of Kensington and Chelsea, will see the remaining 303 flats on the estate benefit from an extensive programme of upgrades including new kitchens and bathrooms, as well as improvements to communal areas, door entry systems and lifts.
Tim Carpenter, managing director for construction at Durkan, said: “Not only will our work deliver much needed new homes in London, but it will build on the area’s existing heritage, giving historic and disused buildings a new lease of life.”
Paul Quinn, Director of Regeneration at Clarion Housing Group, said: “We look forward to working with Durkan on bringing these wonderful buildings back to life.
“This work forms part of a wider Clarion investment in the whole of the Sutton estate where we are upgrading all the existing homes alongside a much improved public realm and enhanced green spaces.”