Newcastle City Council has chosen a Barratt consortium for the £450m regeneration of the city's Scotswood estate.
The BKY consortium, which also includes north-east house builder Yuill Homes and Keepmoat subsidiary Haslam Homes, saw off competition from two other teams: Persimmon / Cheviot Housing Association, and Grainger / Places for People
The deal will involve the local authority and BKY setting up an urban regeneration vehicle to construct 1,800 homes, 60,000 sq ft of shops and offices, plus leisure and community facilities in the Scotswood area, which is mostly derelict.
The council will provide the 60ha site in Newcastle’s west end as equity, with the house builder providing the capital.
There will also be £9.8m of investment from the Homes and Communities Agency, and a further £9m from regeneration body Bridging NewcastleGateshead.
Infrastructure work is already underway, and construction on the first phase of 350 homes could begin within 18 months.
Newcastle City Council leader John Shipley said: “This is the most important step yet in the regeneration of Scotswood, which will bring to life our vision of a sustainable community with new opportunities for local people, high quality new homes and neighbourhood facilities.”