Seven Capital has agreed an off-market deal to buy a 32-acre island site close to Nottingham railway station with potential for a £500m mixed-use scheme.
The Birmingham-based firm has agreed terms with Heathcote Holdings to buy the plot, part of Nottingham’s Eastside regeneration, for around £15m.
Plans for the site, first mooted a decade ago, include a 3m sq ft extension of the city centre to create a new mixed-use quarter.
Heathcote and development partner Roxylight secured an outline consent for the scheme in 2005, but it fell victim to the downturn.
Once the deal is signed, Seven will work with Nottingham city council to re-masterplan the site.
The revised project is likely to be a high-density residential, commercial and retail-led scheme, with the first phase to include rental housing.
Seven Capital director Damien Siviter, said: “We see Nottingham as a real growth market in the East Midlands, especially after the opening of major infrastructure projects such as the new tram line.”
Sladen Estates and Peveril Securities bought the neighbouring Unity Square site in June. They are now understood to be considering speculatively developing the 170,000 sq ft first phase of the scheme to take advantage of the dearth of office space in the city.
A reserved matters planning application for Unity Square is expected next month.
Savills is advising Heathcote; Seven was unrepresented.
