The Smithgate scheme is being brought forward by ECF — a joint venture between Homes England, L&G and Muse — in collaboration with City of Wolverhampton Council to regenerate the 12-acre site.
Caddick has been appointed to deliver the first phase of the development, known as Bicycle Works, which will provide 331 high-quality new homes.
To support delivery, ECF has secured £18m in funding from the West Midlands Combined Authority, alongside £65m of private investment for the project.
Basit Ali, Development Director at ECF, said: “Reaching these milestones is a major step forward for Smithgate.
“Working with Caddick and having funding in place means we can accelerate delivery, bringing high-quality homes, green spaces, and vibrant places that not only make Wolverhampton more liveable but also unlock significant economic growth, creating jobs and having a long-term positive impact for the city and its people.”