Hammerson, who this week announced a £1.6bn write down of its retail property portfolio, has submitted plans to redevelop the former Debenhams in Leicester into new homes for rent.

The property investment company has worked jointly with private-rented-sector specialist Packaged Living, which has extensive experience of bringing forward high quality PRS schemes, to develop the application.

The development, designed by CRTKL, would see the former department store at Highcross transformed into 300 new homes for local residents, as well as providing major improvements to enliven East Bond Street, where the entrance will be located. It will also incorporate flexible retail units.

Mark Bourgeois, Managing Director UK and Ireland at Hammerson said, “Since opening its doors in 2008, Highcross has firmly established itself as an integral part of Leicester’s city core.

“While the structural shift in retail and changing consumer shopping habits have meant that destinations such as Highcross need to adapt their offer and mix of uses, well-connected city centre locations such as this will always be places where people want to be.

“We are delighted to submit this proposal for high-quality homes for local people to rent, which will support our brands at Highcross and contribute to the continued success of Leicester City Centre.”

On completion, the scheme will provide an improved public realm for the city alongside bespoke resident amenities including a roof garden and is consistent with Hammerson’s ambitious target to be Net Positive for carbon emissions, water, resource use and socio-economic impacts by 2030.

In addition to supporting up to 800 jobs on site and in the supply chain during the construction phase, Hammerson has worked closely with Packaged Living to minimise both embodied and operational carbon emissions for this scheme and to ensure it is resilient to climate risk.

Mark Woodrow, Joint Managing Director at Packaged Living added: “St Peter’s Lane is the result of Hammerson and Packaged Living’s shared vision to deliver good quality rental homes within sustainable, mixed-use communities.

“We are delighted to be working with Hammerson, bringing our investment, development and operational experience in the build-to-rent sector to support the re-purposing and evolution of this excellently located asset.”