House building and construction group Galliford Try has reached its financial close on the £347m Gateshead regeneration scheme in the UK, which was revealed in April last year.
The consortium of Galliford Try, Gateshead Council and UK-based housing association Home Group will now form a local asset-backed vehicle to construct 2,400 homes and associated community facilities, for both private sale and affordable housing.
Evolution Gateshead, a joint venture between Galliford Try and Home Group, signed an agreement with Gateshead Council to start work on 19 sites across Gateshead, as well as Tyne and Wear.
Galliford Try chief executive Greg Fitzgerald said: "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 North East."
The project will create 600 affordable homes and 1,800 private dwellings; the first package of three sites will see the development of 318 homes, 55 of which will be available for affordable occupancy.
Work is expected to start on the first sites later this year and continue over the next 15 years. Homes will be constructed at Birtley Northside, the former Rail Freight Depot on the Felling bypass, and sites in Rowlands Gill, Chopwell and Bensham and Saltwell.
Gateshead Council has grouped Gateshead's current regeneration projects geographically under five neighbourhood areas known as Central, East, Inner West, South and West.
Regeneration initiatives covering the central area are park improvements, Durham Road eco-homes, housing renewal partner, neighbourhood plans and a block improvement scheme.
The east area's regeneration initiatives include a new housing concept called BoKlok, a freight depot, and the Gateshead International Stadium transformation.