Graham Construction has been appointed as the main contractor on the development, which is being planned by Mace Real Estate.
Deaconess House was opened in 1894 as a hospital. A number of ancillary buildings, including nurses’ accommodation, were added to the original structure over the years.
It closed as a hospital in 1990 and has recently been used as office accommodation.
The building will be retained and refurbished, with demolition work already underway to clear the site of the redundant outbuildings.
The construction programme is expected to take 65 weeks until summer 2014.
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Three new blocks will be created to the rear of Deaconess House around a central courtyard, which will include an amphitheatre and hard and soft landscaped areas.
The new blocks will rise to four or five storeys and will contain a total of 315 bedrooms, split across a mix of studio apartments and 3, 5 and 6 bedroom units.
Edinburgh University will take over the new student accommodation complex once construction work is completed.
Contracts manager at Graham, Paul McBurney, said: "GRAHAM has significant experience of student accommodation projects for colleges and universities around the UK, including at Stirling, Newcastle and for the University of the West of Scotland in Paisley.
"While Deaconess House isn’t listed, we are treating it as a listed building and will be taking every care to ensure this property is returned to its former glory.
"This will be an interesting construction challenge as we seek to integrate the old with the new and create something which will compliment the surrounding buildings in this historic quarter of Edinburgh."
Graham will be using a combination of materials, including natural stone and powder coated aluminium panels.
The refurbished Deaconess House will incorporate a reception/office, common room, warden’s flat, communal entrance lobby, a laundry/drying room and toilet facilities.
(IT)
