The council has now signed a deal with the company to build 316 new houses and flats in the west of the city. Construction work is expected to begin in spring 2017.
Each energy efficient home has been designed to reduce heating costs and will feature a variety of gardens and open space for residents. The project is also set to provide a jobs boost for the area with opportunities for work experience and training.
The development, which will include 184 homes for affordable rent and 132 homes for sale, forms part of the local authority's programme to deliver 16,000 new homes across the city over the next decade.
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Housing leader Cllr Joan Griffiths said: "North Sighthill is one of the largest new house-building projects in Edinburgh, after the regeneration of Pennywell in the north which is well underway. This development is a key part the Council’s commitment, working with housing associations, to deliver 16,000 affordable and low cost homes and nearly £2 billion investment over the next ten years.
"This project is now part of a larger programme already delivering new affordable homes in Leith, Newhaven, Craigmillar, Pennywell, Gracemount and Chesser in one of the most ambitious Council-led housebuilding programmes in the UK."
Eamonn McGarvey, regional managing director for Keepmoat's Regeneration division in Scotland, added: "We are once again delighted to be working with the City of Edinburgh Council and supporting their vision of sustainable housing and neighbourhoods fit for the 21st century."
It is estimated council homes will be available for occupation by 2019.
(LM)
