Jones Homes, part of the Emerson Group, has exercised an option to acquire five acres at the £100m redevelopment site on the former Vulcan Works in Newton-le-Willows.
The acquisition is Jones' second at the site, the company acquired 5.4 acres in 2010 on which it is building homes for the Newlands Grange development.
St Modwen said it has prepared the remaining 40 acres of the 50-acre site for additional sales. The overall site has planning permission to build 650 homes, a fishing lake, heritage trail and children's play area.
Michael Hosie, development manager at St Modwen, said: "Our vision is to transform a site that has seen nearly 170 years of industrial use into one of the North West's major new residential communities. Since acquiring Vulcan Works we've invested more than £6m in infrastructure improvements and are delighted to bring forward the latest phase."
The site is owned by KPI, which is a joint venture company between St Modwen Properties and Salhia Real Estate Co.