Darlington Borough Council is set to approve plans to create a joint venture company to build new homes in the North East.
A report to the council’s cabinet next week said the company would split profits 50/50 between itself and housebuilder Esh Homes.
The council will contribute funding through prudential borrowing of up to £9.5m at its peak, the report said.
It added: Overall it is estimated the scheme will deliver an average 17% annual return on Capital with pre-tax profits averaging over £1m per annum.”
