The Homes and Communities Agency (HCA) and Derby City Council have agreed a deal to create around 700 new homes for the city.

The HCA and the Council have worked together to prepare the old Manor and Kingsway Hospital site ready for new housing and a business park - and they have now appointed Kier Partnership Homes as their preferred development partner.

Kier will now work with the healthcare service providers on the site to ensure the new scheme meshes with the provision of essential services. Works are planned to start on site in Autumn 2012.

Current proposals from Kier include a contemporary but simple design concept that draws on the mill heritage of Derby and existing architectural influences across the site. It also enhances the landscape features including the tree-lined crescent and brings back into use a large area of open space to the north of the site for leisure and ecology.

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Kier, along with the HCA, Derby City Council and current healthcare providers on the site (Derbyshire Healthcare NHS Foundation Trust, Derby Hospitals NHS Foundation Trust and East Midlands Ambulance Service) will be inviting involvement from the local community into the design development as part of the planning process and to ensure the maintenance of current service delivery.

The development will comprise 700 new dwellings to include a range of affordable homes to rent and buy in addition to a high-quality business park that will support in the region of 450 new jobs for the area. Within the 10 year construction period, Kier will also provide local training and employment opportunities and encourage local businesses to participate in the provision of goods and services.

Graham Dobbs, Head of Midlands North for the HCA, said: "We know through working closely with Derby City Council that Manor Kingsway is a local priority, not least because the derelict buildings have been an eyesore for the communities around the site but also because of its potential as a mixed-use development, which will create jobs, homes and businesses, and boost local economic growth.

"We are really pleased to be supporting the Council and local healthcare providers to transform this part of the city and it's great to have selected Kier Partnership Homes as our development partner so we can push on and get development underway."

(CD/GK)