Glasgow City Council, the Scottish National Investment Bank (SNIB) and the institutional investor Aviva Capital Partners will now move to finalise an investment partnership agreement, subject to the governance approvals of each partner, that will spark regeneration of the 30-hectare site in the Possilpark area of the city, which is currently owned by the council.

It is intended that a mix of new homes will be built on the vast site between Saracen St and Keppochhill Road, revitalising Possilpark as a local town centre through increased population, improved amenities, enhanced open space placemaking, and improved infrastructure. The project is expected to have a value of around £270m.

Housing quality will be central to the plan, which will include a significant proportion of family housing, including terraces and other higher-density low-rise designs across social, affordable, private and build-to-rent tenures. The aim is to make efficient use of land while creating a modern, walkable higher density neighbourhood close to existing services and infrastructure.

The investment partnership between the council, SNIB and Aviva Capital Partners would be a first-in-class model for housing-led regeneration in Scotland, but with a proven track record elsewhere in the UK.

Success in Glasgow could lead to other brownfield land within the city being utilised for new homes, which would tackle the current issues in housing supply and alleviate pressure on homelessness services.

With the council retaining a measure of control over the long-term stewardship of the site, it is expected that around one third of the development be social and affordable homes.

Council leader and city convenor for the City Region Economy, Susan Aitken, said: “This is a welcome decision that will lead to one of the most exciting developments I’ve seen over my 9 years as Council Leader.

“Firstly, 1,000 much-needed family homes of all tenures during a housing emergency is more evidence of Glasgow’s reputation as a city that builds where others prevaricate.

“But the ambition to create a whole new walkable neighbourhood adjoining one of Glasgow’s most famous thoroughfares in Saracen St, with a commitment to quality, design-led higher-density family housing will create a new standard for modern urban design in Scotland.

“And while it may seem like dry accounting fact, the creation of this Investment Partnership with SNIB and Aviva opens up a whole new world of possibilities for housing-led regeneration in our city, and we are already in discussions with other similar patient capital funders around other large brownfield sites across Glasgow.”

Cowlairs is one of five major regeneration zones across north Glasgow, alongside Sighthill, Dundashill, Hamiltonhill, and Possilpark, which together are expected to deliver more than 5500 new homes in a part of the city that has an abundance of post-industrial land along the Forth & Clyde canal, but where some of the city’s most stubborn pockets of inequality remain.

Agreement at the City Administration Committee will now allow the partners to progress their own approvals, followed by establishment of the investment partnership and pre-planning application.

The people of Possil and wider North Glasgow, their elected members and other organisations and stakeholders will be able to provide feedback that helps shape the scheme.

Derelict for three decades, Cowlairs is a complex and challenging site that includes historic mine workings, a disused mineshaft, topographical issues and significant infrastructure requirements.

Enabling works and construction would then begin in due course in three principal phases, each phase delivering a third of the homes across the site and allows early delivery to be focused on the most readily developable areas and homes and ensuring that a good mix of housing tenures is delivered from the outset.

Regeneration specialist Place Capital Group has provided feasibility and design support for the project.