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The design and build deal covers two blocks providing 76 affordable homes and associated landscaping works.
Client Bonner Road LLP, linked to Clarion Housing Group’s development arm Latimer, picked Rhatigan after a four-way tender race.
A contract will be signed from 1 June with works running through to February 2031.
The phase forms part of Latimer’s wider plan for 274 homes on the former hospital site, with 50% affordable housing by habitable room.
The first phase homes are understood to be focused on social rent provision, forming a key plank of the affordable housing offer.
The AHMM-designed masterplan will restore the Grade II-listed main hospital building, Sanitary Tower and South Wing, which are all on Historic England’s Heritage at Risk Register.
Five new buildings of five to nine storeys will also be built across the site, alongside 125 sq m of community space.
The historic hospital grounds will be opened to the public for the first time in nearly a decade, including 1,140 sq m of open space, a new public square off St James’ Avenue and restoration of the formal lawn.
Plans also protect the veteran Mulberry tree, reputed to be the oldest tree in the East End, in its original location.