Vistry Partnerships has now signed a deal with Sage Housing to own and manage 96 affordable homes within its redevelopment of a disused area of the Walton Hospital site.
The site, on unused land next to the hospital, off Whitecotes Lane and Harehill Road, has been derelict for four years after the disused western wing of the hospital was demolished.
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SME Modus Partnerships has also been brought in to work on the development and will build 32 affordable rental homes and 18 shared ownership properties on the site.
Sage will own and manage these 50 affordable homes, along with a further 46 affordable homes developed by Vistry Partnerships.
Bosses say the project will give ‘a new lease of life’ to a brownfield site.
Stephen Teagle, chief executive of Vistry Partnerships, said: “This deal adds to our existing portfolio of 1,118 homes we are currently delivering in partnership with Sage across the UK.
"Including this project, we will have £260m worth of work in progress, but most importantly we are working with valued partners to unlock quality housing using modern methods of construction, whilst creating jobs, communities and places people can be proud of.”
Mark Sater, chief executive of Sage Housing said: “Sage is proud to be expanding its work with Vistry Partnerships to deliver sustainably built homes in Chesterfield.”
The site will feature two, three and four-bedroom family homes – of which a minimum of 60 per cent will be affordable.
In an objection letter to Chesterfield Borough Council one resident said traffic on Whitecotes Lane was ‘already atrocious’.
Other people who live nearby raised concerns about how schools and doctors will cope with new residents from more than 150 properties.