Contractors Eric Wright Group and Seddon Construction are part of a consortium that has won a £100m PFI scheme.
The Sapphire consortium, which also includes housing association Your Housing Group and project management and finance firm Kajima Partnerships, is the preferred bidder to build and run 390 apartments for over-55s for Stoke-on-Trent City Council.
The extra care apartments will be built across three retirement villages and will be fully occupied by 2017. Eric Wright will deliver two of the sites and Seddon will build the remaining one.
The procurement process started in November 2011 and Sapphire was one of four bidders to be shortlisted in March 2012.
Balfour Beatty, Extra Care Solutions 4 Stoke-on-Trent, and the New Day Villages consortium, which included Staffordshire Housing, Lovell Partnership and Morgan Sindall Investments, were shortlisted for the scheme along with Sapphire in March 2012.
A spokesman for the council said there was no particular reason for the drawn-out procurement, but admitted competitive dialogue had proved to be a lengthy process.
Sapphire will build, finance and operate the retirement villages over a 25-year period in partnership with the council.
Stoke City Council cabinet member for regeneration, planning and transportation Ruth Rosenau said the scheme was the largest of its kind to be built in the city.
Eric Wright Group partnerships managing director Richard Turpin said: “The consortium that we put together for this project has worked in partnership to develop a compelling bid and we are looking forward to making our plans for the villages a reality for the people of Stoke.”