The plan, described as “a real boost” for the town, follows the purchase of land at Alfreton Road by Countryside, the UK’s leading mixed-tenure developer.
Construction work is expected to start soon on two, three and four-bedroom houses at the site, which is near the A38.
Of the 110 properties earmarked, 99 will be available for private rental through Gatehouse Bank and TPG Real Estate. The two companies have formed a partnership to “deliver high-quality, build-to-rent houses for single families”.
The other 11 new properties will be affordable homes, owned and managed by emh group, one of the leading housing associations in the East Midlands.
All 110 homes will be linked to Alfreton Road via a new access road, while a new footpath will provide a direct link to the nearby Mapplewells Primary and Nursery School in Sutton.
Glyn Mabey, managing director of Countryside for the East Midlands, said: “This site will being much-needed housing to the Sutton area.
"We are committed to regenerating areas such as this, and to creating communities that people can be proud of.
"We are delighted to be partnering with Gatehouse Bank, TPG Real Estate and emh group on this development, which will create not only housing but also local employment and investment in the Sutton economy.”
For Gatehouse Bank, chief commercial officer Paul Stockwell said: “We are happy to expand our single-family housing portfolio.
"Countryside has an unrivalled reputation for building houses that meet the requirements of local communities, so we are pleased to join them in bringing these new homes to Sutton.”
Chris Jones, executive director of development at emh, said: “We are proud that our strong partnership enables us to build the high-quality, affordable homes needed within the local community where it matters.
"This development will provide a real boost to Sutton.”
Gatehouse Bank, founded only 14 years ago and based in London, operates in accordance with Shariah principles, or Islamic law.
It has been investing in the UK’s private rented sector since 2014, with the aim of addressing the country’s housing shortage.
Its policies have been singled out by the government as a model for how foreign investment can help alleviate the UK’s housing crisis.