Infinity Investment Group chief executive Paul Croft said the company had noticed a gap in the market for sections ranging from 1500sqm to 3ha.
On the outskirts of Cromwell, at the foot of the Pisa Range, the Shannon Farm subdivision will eventually be made up of five areas with a total of 160 sections of varying sizes.
Shannon Farm sales manager Patrick Waser said construction in the first stage was expected to begin in June or July next year and be completed within a year.
Equal partner in the development is NZ Cherry Corp, which owns the neighbouring cherry orchard.
According to its website, NZ Cherry Corp is planning to double the size of its cherry orchard to about 60ha and build worker accommodation on site.
About 73ha of elevated land would be protected as green space for the community, the website said.
Consent has recently been granted for a mountainbike park to the west of the subdivision.
