The housing developer will deliver around 300 family homes – including affordable housing – from early 2019.
The overall Ashton Green project will produce a mixed-use community of up to 3,000 new homes, along with community and health facilities, employment land and retail.
Kier Living will purchase a 37-acre site situated off Bevan Road on the eastern edge of the scheme between Beaumont Leys and Thurcaston from the council.
The proposals include a range of high-quality contemporary two- to five-bedroom homes – all designed to meet the environmental standards required for Ashton Green as a sustainable development.
The scheme will also comprise around 13 acres of open space provision, sustainable drainage solutions and protected wildlife corridors.
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Peter Soulsby, Leicester city mayor, said: “I very much look forward to working with Kier Living on this next phase of development at Ashton Green.
“Work is already nearing completion on the Morris Homes properties, which were the first to commit to developing in Ashton Green, and now Kier’s involvement will continue that momentum and bring the complete scheme a step closer.”
Chris King, managing director at Kier Living, added: “As one of the most innovative and sustainable developments in Leicester in more than 30 years, we are delighted to be delivering the next phase of housing for the city.
“With around 300 new homes planned, we’re looking forward to working with the council and local community to deliver this exciting project.”