Kier and Thames Valley Housing have signed a PFI contract with Woking Borough Council for a mixed-tenure housing development.

After being selected in November 2012 as preferred bidder for the scheme, Kier will start construction on site immediately and expects to finish the first affordable homes in early 2015.

The project cost is estimated at £80 million (US$ 130 million)

Kier will build 371 new homes on a 9.5 hectare site near Moor Lane in Woking (England). The units are split as follows:

• 147 homes private sale
• 224  social housing.

Thames Valley Housing will manage and maintain the social housing over the 25-year contract.

Kier Homes managing director Chris King said:

"We are delighted that the procurement and planning process for this exciting development has drawn to a close to enable work on site to commence. The design and layout of the development and the careful integration of a range of tenures will ensure that the scheme is both aesthetically pleasing and sustainable, providing Woking with a high quality residential environment for many years to come."