Willmott Dixon and Milligan are expected to help the council realise schemes that have already been awarded government funding.
Torbay has £21.9m Town Deal funding for Torquay and 13.36m from the Future High Streets scheme for Paignton, awarded back in 2020.
The aim is to reshape town centres, repurpose empty shops and improve the connectivity between towns.
Jim Parker, chairman of the Torbay Place Leadership Board, a public/private sector partnership that promotes investment in the area, said: “The regeneration of the bay has been a long time in the making but now we are at the crossroads to the dawning of a new future and more prosperous era for everybody.”
Willmott Dixon is already active in the region, currently working on the Harbour View Hotel in Torquay for Torbay Council and the Corbyn Head Hotel on Torbay Road.
Willmott Dixon and Milligan were procured through Pagabo’s developer-led framework.