In one of its first UK schemes, offsite homes builder BoKlok is to build 200 homes in Bristol.
Work on the project for Bristol City Council is due to start in autumn 2020, subject to planning permission.
BoKlok, a joint venture between Skanska and furniture retailer Ikea, builds homes primarily from wood, using industrialised processes with completion offsite. So far around 12,000 BoKlok homes have been built in Sweden, Finland and Norway.
The homes at the new Bristol development on Airport Road will be manufactured in Estonia.
They are being built as part of the five-year Bristol Housing Festival which is trialling innovative offsite housing solutions across the city.
About 140 of the homes will be for market sale under the BoKlok brand. The remaining homes will be for social rent and shared ownership.
Gregor Craig, president and CEO, Skanska UK, said: "Skanska's purpose is to build for a better society and BoKlok will broaden our offer in the UK with sustainable, quality homes at a low cost. Skanska has been actively involved in Bristol for many years, building or refurbishing over 50 schools in the area. So, I am delighted that these plans for BoKlok would extend our association with the city."
Jez Sweetland, Bristol Housing Festival's project director, said: "The festival is all about re-imagining new and better ways to live in our cities. BoKlok provide creative solutions with a fantastic track record of creating great homes and strong communities, we are really thrilled to be working with them."
