The site of the former Guest Hospital on Tipton Road is set to house 157 new homes in partnership with the Homes & Communities Agency (HCA) and Dudley Metropolitan Borough Council (MBC).
Wates will build a combination of 127 new build homes and 30 refurbished properties, including restoration of the locally listed former porter's lodge.
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The properties have been designed by architect Armstrong Burton.
Councillor Gaye Partridge said: "This is an extremely welcome and exciting regeneration project. It will enable the provision of more affordable housing for our residents and bring an historic building back into use offering luxury apartments. This development compliments the regeneration of the area offering a significant economic and social boost to the local community."
Joanne Jamieson, MD, Wates Living Space – Homes, added: "This development is a reflection of the huge partnership effort between ourselves, the HCA, Dudley MBC and the community to bring this scheme to fruition.
"It is now our express intention to work with a locally-sourced supply chain and use our presence in Dudley to create tangible employment and training opportunities."
(LM/CD)
