Hammerson is to turn a former Debenhams department store in Leicester into new homes as part of a 300-home build-to-rent residential scheme at one of the city’s major shopping centres.
The landlord has appointed private rental specialist Packaged Living as its development manager. The pair aims to submit a planning application early next year.
Hammerson said the scheme would turn the retail space at its Highcross shopping centre into high-quality rental homes and would contribute to improvements to the public realm in the area.
The retail frontage onto the mall at Highcross will be kept, with the space transformed into smaller and more flexible space for retail and leisure brands. Residents will get amenities such as a co-working space and a private dining room.
The development comes as part of Hammerson’s broader plan to reduce the amount of floorspace occupied by department stores and other challenged retailers at its top properties. Last year, it turned a former House of Fraser outlet at the same shopping centre into a selection of smaller stores run by Zara, JD Sports and Treetop Adventure Golf.
Mark Bourgeois, Hammerson’s UK managing director, said the plan would help the firm “manage the structural shift in retail whilst maintaining the vibrancy at our flagship destinations”.
He said: “This exciting project will meet demand for rented accommodation in Leicester city centre and ensure Highcross remains an exciting destination for visitors, whilst supporting local businesses and boosting footfall.”
The firm said it hoped to minimise embodied carbon emissions at the scheme, as well as contribute to its target of being net positive for carbon emissions, water, resource use and socio-economic impacts by 2030.
Packaged Living has grown a pipeline of more than 2,000 homes since its inception in 2018.
