The consortium of Galliford Try, Gateshead Council and housing association Home Group will now form a local asset backed vehicle (LABV) to build 2,400 homes and associated community facilities, for both private sale and affordable housing.
Work is expected to start on the first sites later this year and continue over the next 15 years. The first package of three sites will see the development of 318 homes, 55 of which will be for affordable tenures.
Galliford Try chief executive Greg Fitzgerald said: "We are delighted to have reached an agreement with our partners to build this much-needed housing in the Gateshead area. We believe that this new local asset backed model with Gateshead Council and Home Group represents an innovative solution to enable Galliford Try and its partners to significantly improve affordable homes supply and sustainable communities in the northeast."
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