Barratt has been chosen as development partner by Isle of Wight Council and Western Challenge Housing Association for a project in Newport.
The total value of the Pan Development is estimated at £190m.
The house builder will be responsible for finance, design and construction of residential and other buildings, including infrastructure on a greenfield site.
The development will be taken forward in phases, with the first phase scheduled to be delivered by March 2016. It will include the construction of affordable and private housing, infrastructure for the whole development including the spine road, a biomass facility, country park and ranger station. Up to 178 units of affordable housing and up to 239 units of private for sale housing will be constructed.
Phase two comprises the development of the remainder of the site, and includes up to 136 affordable housing units and 367 units of private for sale housing.
The Pan Development Programme is seeking to deliver a minimum of 30% social housing and has funding from the Homes & Communities Agency for 240 planned affordable housing units.
The construction programme is expected to run for 15 years.