The firm will build 296 two, three and four-bedroom houses and bungalows to replace homes demolished more than a decade ago.
Two further schemes in Middlesbrough for Thirteen, worth £42m combined, were announced by Esh Construction earlier in the year.
The sites known as Kedward Avenue in Brambles Farm and Union Village in Gresham will provide 250 new homes for affordable rent.
Andy Radcliffe, Esh’s chief executive, said: “Combining Grove Hill with developments at Kedward Avenue and Union Village, we are set to deliver more than 540 new affordable homes with Thirteen across Middlesbrough in the coming years.
“These schemes form part of ambitious plans to regenerate areas of the town, and through a raft of social and economic value initiatives, we will endeavour to create a lasting legacy within the local community.”
Esh Construction will work in partnership with IDPartnership Northern, 3E Consulting Engineers, Elliott Associates and ONE Environments to deliver Grove Hill, with the first homes anticipated to be available by Autumn 2025.