This innovative contract, which will initially focus on the redevelopment of key sites across the City, is worth at least £100 million over the first eight years and potentially up to £800 million over 20 years.
Councillor Paul Watson, Leader of Sunderland City Council said: “The chance to take part in an ambitious, long-term initiative attracted bids from a number of leading UK companies.
“We were delighted at the high standard of the shortlisted bids and it was a difficult task to choose the preferred bidder, but the commitment, track record and approach of our chosen partner gave it the winning edge.
“This decision marks an important milestone in the joint venture agreement, which will breathe new life into under-used publicly owned land in prime sites for development.
“The programme will invigorate key areas of the City and offer new opportunities for employment, housing, shopping and leisure.”
The scheme also paves the way for the development of the Vaux site, which has been standing empty for 14 years since the brewery closed in 1999.
Other key sites which will also be developed by the partnership include Seaburn, Chapelgarth, Farringdon Row, Holmeside and parts of the East End.
Carillion Chief Executive, Richard Howson, said: “We look forward to working with Sunderland City Council and to engaging with local communities and businesses to deliver the Council’s vision for the City, which will bring major benefits to the people of Sunderland and act as a catalyst for further inward investment.”