Kier Property has agreed the purchase of a land in Southampton, which it plans to redevelop for student accommodation.

The 2.26 acre site comprises cleared land on which the former East Street shopping centre used to sit, a vacant office block known as Capital House and a public house. The Kier team has developed a proposal that offers a 423-room student-led scheme together with associated retail and leisure space.

It's located in a prime space close to Solent University and a short walk from the city centre and its associated shopping and leisure facilities. The scheme forms part of the drive to regenerate Southampton through the city centre masterplan, which also includes the Mapmakers development, where Kier is delivering 66 high quality homes on the site of the former Ordnance Survey headquarters.

Gillian Scarth, senior development manager at Kier Property, commented: "The redevelopment of this prime site in Southampton city centre has been eagerly anticipated since the site was cleared in 2013. It's a great success story and we are looking forward to playing a key role in the regeneration of the city.

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"The East Street scheme forms part of our UK-wide strategy to acquire land and property in order to deliver a full range of direct-let student facilities. We have a proven track record in delivering student accommodation-led schemes, having successfully opened 264 student bedrooms in Glasgow last summer and we announced a further 329 bedrooms in Newcastle earlier this month. We continue to expand in the sector with a pipeline of over 1,000 student rooms planned in the north and south of England, over the next five years."

Administrators were appointed to Arcadian Estates Limited (AEL), which owned the East Street site, on 17 December 2014, and the site was brought to market in spring 2015.

Ed Boyle and Jim Tucker from KPMG's restructuring practice, and joint administrators of AEL, acted on the sale of the site.

Ed Boyle commented: "We are pleased to have come to an agreement with Kier Property, with the support of the local council, which will bring further investment to Southampton at the heart of its commercial district and which provides a good return to AEL's creditors."

In addition to the student accommodation, Kier Property has also submitted plans for retail and leisure use, and a decision on these elements is expected in April. The entire East Street development is expected to complete in September 2017.

(MH)