Work on Dee Park estate in Tilehurst, Reading will involve three phases over eight years as the 1960s-built estate covering 33 hectares is transformed.

The new Dee Park will have 763 new homes, including 281 affordable homes, plus a new primary school, community centre and shops.

Phase one sees Dee Park Partnership, a consortium of Willmott Dixon Group and Catalyst Housing Group, deliver 264 new homes in a mix of one and two-bedroom apartments and two and three-bedroom houses.

The tenure mix will be 140 homes available for private sale through Willmott Dixon Homes and 124 available for affordable rent through Catalyst.

Willmott Dixon Homes aims to release the first homes for sale off plan later this year, with occupations starting in 2011. All building work will be carried out by Willmott Dixon Housing, with HTA the architects.

The project will also provide work opportunities for local companies, and will also see four local apprenticeships created.

Andrew Telfer, chief executive officer of Willmott Dixon’s regeneration business, said: “I am delighted we can now begin to deliver quality new housing for Dee Park. There has been much consultation with residents to agree the master plan and we look forward to continuing these close relationships as we realise a vision that will herald an exciting future for everyone at Dee Park.”