Australand has entered a joint venture with privately owned St Hilliers to build $300m worth of public housing in Victoria.

The joint venture is the state government's preferred choice to redevelop public housing in Carlton, in inner city Melbourne, Australand Property Group said.

The project spans 7.5ha across three sites and involves replacing 192 old, walk-up apartments with more than 240 new units and 500 residential homes.

The partners expect to finalise documentation by the end of July, Australand said.

The Australian