Three B.C. First Nations have announced their intention to purchase a 38.8-acre parcel of land in West Point Grey, the province announced Friday.

A letter of intent has been signed by the Musqueam, Squamish and Tsleil-Waututh First Nations, which permits them to begin working with their communities to come to an agreement with the government.

The land in question is a provincial Crown land parcel, which is located next to the existing federal Jericho lands.

"If a sales agreement is concluded, it will allow for a meaningful community consultation process between the First Nations and the City of Vancouver on what the community would like to see with respect to future development of the lands," the government said in a statement.

David Eby, the New Democrat MLA for Vancouver-Point Grey, said he hopes there is a high level of consultation, so that eventually affordable housing can be provided there.

"I think this is an opportunity to bring people together and do something amazing and it won't happen if the property is simply sold on the market for the highest value because that will be luxury condos sold on the international market because that's what's happening in our communities right now," Eby said.

The Jericho lands consist of two parcels totaling 38.8 acres, which are owned by the province and another 52 acres, which were recently transferred from the federal government to the Musqueam, the Squamish and the Tsleil-Waututh First Nations, and the Canada Lands Corporation.