The 80-bed facility will be developed on the current Newent Home site in Surbiton.
The centre will provide care for the increasing number of older people in the borough living with dementia, as well as generate income for the local authority from those residents who are able to fund their own care.
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Cathy Roberts, Kingston Council's Cabinet Member for Adult Social Care, Health and Housing, said: "We are pleased to be working with Willmott Dixon on this exciting project. Kingston Council is committed to ensuring that there is high quality care available for older residents who need additional support."
Roger Forsdyke, Managing Director of Willmott Dixon in South London and Southern Home Counties, said: "We are delighted to be working with Kingston Council to create their new dementia home. We have vast experience working in this sector and look forward to using our skills to create this specialist facility."
Works on site are due to start in winter 2018, subject to planning permission, with an opening date set for 2020.
(LM)
