The 3,173 sq ft convenience store will be located on the ground floor of a Build to Rent block and is expected to open in the second quarter of 2027.
It is part of the first phase of the Dagenham Green regeneration scheme, aiming to deliver more than 3,500 homes in total.
Andy Hill, founder and group chief executive of The Hill Group, said: “Securing Sainsbury’s as our first tenant is an important step in our vision for Dagenham Green.
“Having a trusted national retailer like Sainsbury’s on board from so early in the development will be a huge asset for this growing community and demonstrates the appeal of the development for leading brands and businesses.”
Dagenham Green is being built on the former Ford Stamping Plant site and will transform 45 acres into a new neighbourhood including green spaces, a secondary school, and community facilities.
Jonathan Arthur, Sainsbury’s head of convenience property development, said: “We’re delighted to be partnering with The Hill Group and Peabody to bring a brand-new Sainsbury’s Local to this exciting development.
“As well as creating employment opportunities, our new store will bring a carefully curated selection of Sainsbury’s high-quality, great value products to the local community.
“We’re looking forward to becoming a central part of the new neighbourhood in Dagenham Green once it opens.”