A £130m investment has been made in Wirral Waters One which is expected to create up to 20,000 jobs and feature 600 new homes.
Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds, has backed Peel L&P's scheme at a 500-acre brownfield site and former dockland.
PIC is the sole investor for the build-to-rent scheme which will comprise 500 one and two-bedroom apartments, with an affordable housing component of 100 homes.
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James Whitaker, executive director of development at Peel L&P, said: "This project is a great example of partnership working that will not only deliver this development but will act as a model for other schemes in the future.
"The combination of an experienced regeneration company, a long-term investor, and a progressive local authority will deliver real value for all our collective stakeholders."
Hayley Rees, head of investment strategy at PIC, added: "Our investment in WWO is another step in the development of our purposeful investment strategy and ultimately is a model for how long-term investors can play a key role in the levelling up agenda.
"We need secure long-term cashflows to back the pensions of our 300,000 policyholders and so seek to invest in assets with a high degree of social value, because what makes sense for society helps us achieve our purpose over decades."
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Cllr Tony Jones, chair of Wirral Council's economy, regeneration and development committee, said: "Already this year with this announcement we are seeing another major step forward for Wirral's Left Bank with the delivery of this latest significant development.
"The council has worked closely with both Peel L&P and PIC to bring forward this project which will be delivering jobs and affordable housing for people in Wirral.
"With Peel L&P taking the occupational and delivery risks, this build to rent development will be able to provide a long term revenue income stream to the local authority which could support wider service delivery and future investment.
"It is also another key moment in the continuing wider regeneration in the borough, tying in with the work well underway in Birkenhead to drive forward the town’s renaissance and showing the increasing confidence of investors in the plans for Wirral’s future."