St Modwen has sold nearly six acres of residential land to Sigma Capital at Cromwell Road in Ellesmere Port.
The transaction will kick-start the development of the 29-acre former HH Robertson steel works, where there is planning permission in place for up to 350 homes.
Sigma plans to build 98 houses aimed at the private rented sector. The scheme is due for completion in 2018.
Nick Whittingham, land director at St Modwen, said: “We are pleased to see the start of the redevelopment of the former HH Robertson site to deliver a sustainable, high quality development. Cromwell Road is a key regeneration area for Ellesmere Port Development Board and Cheshire West & Chester Council and will open up the area for major improvement.”