Group commits to long-term housing project as part of city centre regeneration.

Gleeson has signed a 12-year deal with Liverpool City Council to become its preferred developer for part of its Housing Market Renewal Initiative.

The agreement gives Gleeson first refusal for any contract to develop sites in the City Centre South Zone - a 1,000-acre area covering the Baltic Triangle, Toxteth, the Dingle and Granby.

Gleeson says that up to 2,500 homes could be developed over the 12-year period, at least 20% of which are likely to be for shared ownership.

Two of the group's companies - Gleeson Regeneration and Gleeson Homes are already working in the area on a scheme to create 107 properties adjacent to Park Road.

Gleeson Regeneration says it will employ local labour as far as possible, and is sponsoring the Construction GCSE at the local comprehensive school.

Terry Massingham, chief executive of Gleeson, said: "The agreement is a reflection of the value we place in recognising that social and economic renewal is as important as physical change. As part of the HMRI, we are working towards creating vibrant, high quality, sustainable neighbourhoods in conjunction with local people."

Gleeson also has major long-term partnering arrangements in Manchester and Sheffield