Live Smart @ Home is to develop 117 of the Scandinavian-style homes and 36 flats on a site opposite Gateshead International Stadium as part of an affordable homes scheme.
Media reported the news as IKEA, which developed BoKlok jointly with construction firm Skanska, selling flatpack homes in Britain. The units in Gateshead, which cost around £70,000 each, will be marketed in the local store and come with an IKEA furniture voucher.
BoKlok homes are constructed using the closed panel system developed by Pace Timber Systems, now part of Kingspan Off-Site Ltd, and have wood flooring thoughout. Construction consultancy Avebury has been appointed to oversee the work.
Live Smart @ Home managing director Alan Pole said: “We will be looking to begin work on site at the earliest opportunity, with a view to marketing this unique and affordable properties to local people in the autumn.”
Further developments are planned for Brighton, Edinburgh and the New Forest.
