The contractor is building 40 apartments on the site of the former Eastern General Hospital at Fleming Place.
The units are being developed for housing/care provider Bield and will provide homes for up to 106 people aged 50 or over.
-- Advertisement --
The development has been part funded by a £2.2m award from the Scottish Government and is expected to be completed in February 2018.
Gerry O'Sullivan, Chair of Bield, said: "We're delighted to see the first pieces of the project falling into place as we play our part in ensuring that Scotland leads the way in providing affordable, quality homes.
"In these difficult economic times, it is a good example of what can be achieved by greater partnerships between the private and public sectors. It means Bield have been able to continue to deliver new affordable housing which meets the needs of the older people of Edinburgh."
(LM/CD)
