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Forty of the units will be council homes for rent, with the remainder to be sold as market housing.
Bouygues UK beat off the competition to win the contract for the former Armitage Shanks Tap Works Factory site, as well as land on Fifth Avenue and Broome Road.
The factory on Showell Road closed its doors in 2007 and has since been demolished.
Construction is expected to start in the last quarter of this year, with the council homes set to be completed within 2 years. The market housing for sale is expected to be completed within 4 years.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Housing and Assets, said: "This project will give the Low Hill area a major boost and the proposals have been warmly welcomed by the Hawksford Residents and Tenants Association.
"It will be great to see these derelict plots being put to such good use.
"As part of regeneration plans for Wolverhampton, a target of building 13,400 new homes across the city between 2006 and 2026 has been set.
"This project supports the house building programme and will deliver quality homes for all."
The council homes will be managed by Wolverhampton Homes
Craig Tatton, Chief Operating Officer at Bouygues UK, said: "As well as providing high quality new homes and regenerating derelict land, we are committed to delivering the maximum benefit to the community from this project by engaging with local suppliers, residents and training providers to offer new employment and upskilling opportunities through our National Skills Academy for Construction."
The project will comprise a mixture of 1, 2, 3 and 4 bedroom properties; consisting of apartments, houses and bungalows.
The development at Fifth Avenue also includes two wheelchair accessible family sized bungalows, which have been constructed, as well as a specialist supported housing scheme of 14 homes for people with mental health needs, which will be staffed at all times.
The council has secured a Local Development Order (LDO) meaning Bouygues UK only has to submit detailed design proposals of the new homes to the council for approval.
Plans have been produced by urban designers and architects at IDP, a leading multi-disciplinary design consultancy based in Coventry.
Luke Hillson, Urban Designer at IDP, said: "Working with Bouygues UK, we overcame the challenges of the site to create an efficient design that is robust in its approach to the public realm, with a bespoke range of housing that responds to both the local character and need.
"We are delighted that our vision has been accepted by City of Wolverhampton Council and look forward to the scheme helping to regenerate the area."
- released: Monday 3 April, 2017