Plans to build 600 new homes in Glasgow have taken a step forward after £40 million of funding was secured.

Queens Cross Housing Association aims to transform Hamiltonhill into an “urban suburb” after agreeing a deal with M&G Investments.

It will build 300 affordable homes for rent in the north-west of the city, with the remaining half to be new builds for sale.

Discussions are ongoing with developers in the hope ground and drainage work will begin in spring.

Shona Stephen, Queens Cross chief executive, said: “This is just the latest piece of the jigsaw that will deliver a real transformational change to this part of the city.

“Building a relationship with an asset management company for funding is a first for Queens Cross.

“This innovative approach to securing investment is a great demonstration of our commitment to explore all avenues to secure the funds we need to help improve the lives of our tenants and to build Queens Cross as an area people can be proud to call home.”

The development will also include a new park and green space with community and commercial developments.

Glasgow City Council will also be a key partner in the project.

Mark Davie, head of social housing at M&G, said: “Queens Cross Housing Association is already providing much-needed housing across Glasgow, supporting the local community.

“This is our third deal with a housing association in Scotland, where good quality affordable homes continue to be in short supply.

“This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property.

“M&G has now invested over £6 billion in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”