UK-based SERGO has chosen Barratt London as a partner to deliver 1,000 homes on the former Nestle plant in Hayes, West London.
The agreement is subject to planning permission.
Both firms will be working with Hillingdon Council to gain planning permission.
SEGRO will eventually sell the land to Barratt London, for which it is allocated for residential purposes. Barratt will be responsible to build homes and community space at this site.
It is less than a mile from Junction 3 on the M4 motorway, offering easy access to the UK motorway network for regional distribution and to central London for urban logistics operators.
It also has good rail connectivity as it is close to Hayes and Harlington railway station, which is expected to become a Crossrail station in 2019.
SERGO purchased the 30-acre land in 2015 to provide quality urban warehousing facilities and meet growing demand from occupiers.
SEGRO business unit director for Greater London Alan Holland said: "This is an exciting time for SEGRO as we embark on a new journey to deliver both first-class urban warehousing alongside a high quality residential scheme.
"London's population is set to expand significantly over the next decade and with land supply diminishing rapidly, we understand the need to think creatively to meet the need for homes and jobs.
"As experts in developing sustainable, modern industrial and logistics warehouse space, we are delighted to partner with Barratt London who have a strong track record in taking complex sites and transforming them into great places to live.
"We will bring forward the space for jobs and businesses and Barratt London will bring forward the homes for Hayes."
Following receipt of planning permission, work will begin in 2017.
Besides delivering over 1,000 homes and 400 jobs, residents and local employees will be able to take advantage of a range of amenities such as the open canal frontage and new community facilities.
SEGRO is a UK-based real estate investment trust and a leading owner, asset manager and developer of modern warehousing and light industrial property, while Barratt London is a residential developer.