Sheffield City Council has approved the £150m investment from Legal & General Capital for the regeneration of West Bar Square.
Councillors at the cabinet meeting on 13 February voted unanimously in favour of the agreement with Sheffield City Council and its development partners Urbo and Peveril Securities, the property arm of Bowmer & Kirkland.
The 7.3-acre site has outline planning permission for up to 1.5m sq ft of mixed-use space, including up to 914,932 sq ft of offices, up to 538,195 sq ft or 525 residential units, up to 215,278 sq ft of hotel space and 53,819 sq ft of retail and leisure space.
The deal will see the council take a lease on 100,000 sq ft to be developed by Urbo.
Legal & General Capital will fund the development of 345 build-to-rent apartments, a multi-storey car park and public realm space in the first phase of the regeneration. It will also fund the development of a second 100,000 sq ft office.
Plans for the five-year investment were revealed last week. Construction of the first phase is expected to begin in 2020.
Cushman & Wakefield advised Sheffield City Council. L&G declined to comment.
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