The housing provider is to buy a plot on Edison Road in Eccles from Salford City Council to bring forward 51 affordable homes.
The council and ForViva have agreed heads of terms for the sale of the Edison Road site, which comprises former tennis courts and a bowling green, but no price has been disclosed.
A valuation of the site conducted in 2019 valued the land at £55,000, according to a council report.
The agreement comes after ForViva had initially planned to redevelop a different site nearby – the former bowling green belonging to The Rock pub on Peel Green Road.
However, the council expressed concerns over the density of that proposed scheme and ForViva opted to end negotiations with landowner Punch Taverns and turn its attention to the Edison Road site.
As part of the deal, which would see ForViva sign a 250-year lease on the 1.1-acre site, the firm has agreed to sell a strip of land it owns on Higson Avenue to the council.
The Higson Avenue land would have been used as a point of access under ForViva’s plans for The Rock bowling green.
Salford City Council hopes that acquiring the land will “limit the scale of what may be delivered on the site”, according to a council report. Salford has also expressed a desire to see the bowling green converted into allotments.
Terms have also been agreed between the two parties for the Higson Road site.
Story update as of 27 October 2020:
A spokesperson for Salford City Council said: “The council has a duty to safeguard the privacy of financial information for commercial partners.
“A decision is to be made on whether ForViva can buy a plot of land on Edison Road in Eccles from Salford City Council. This will be made on Monday 9 November.
“To protect the financial information of ForViva, there are two parts to the council report about the potential sale. One part is published and publicly available, and the second part is not publicly available.
“The figure of £55,000 is in the part one document and reflects the existing use value of the land. This is different to the proposed disposal price. The sales price is in the part two document, which is commercially sensitive and not available for the public.
“However, we would confirm that the provisionally agreed sales price does represent best value for the site and is in line with the price estimates the gentleman has indicated.”