The City of Edinburgh has appointed Places for People to deliver 188 affordable homes under the National Housing Trust initiative.
Under the contract Places for People will be responsible for delivering 126 homes in Lochend North and the rest at Madelvic 8.
The deal is the largest of its kind so far signed between a developer, Scottish Futures Trust and a local authority.
The National Housing Trust initiative is being led by the Scottish government and Scottish Futures Trust in order to provide more affordable rented homes across the country.
The latest deal will see the first homes built under the scheme in Edinburgh.
Money borrowed by the council to fund the project is underwritten by the Scottish government.
City of Edinburgh Council housing leader Councillor Paul Edie said: “I’m delighted that Edinburgh has blazed a trail by securing the largest contract so far for affordable homes through the National Housing Trust initiative.
“This is a significant achievement given the current economic climate and shows the firm commitment by this Council to give the affordable housing market and construction industry a much-needed boost.