The project will see part of the former Debenhams department store at Highcross transformed into new homes for local people.
On completion, the scheme will provide over 300 new units, and bespoke resident amenities, including co-working space and a private dining room.
The retail frontage onto the mall at Highcross will be retained, and the area will be transformed into smaller and more flexible space for retail and leisure brands.
The company is working with private rented sector specialist Package Living to develop the plans ahead of submitting a planning application early next year.
Packaged Living has been appointed as development manager, enabling Hammerson to utilise its in-house investment, development and operational capabilities.
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The project is also consistent with Hammerson’s target to be net positive for carbon emissions, water, resource use and socio-economic impacts by 2030.
It is working 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 Bourgeois, managing director for UK and Ireland at Hammerson, said: “[The] announcement is another example of the steps we are taking to manage the structural shift in retail, while maintaining the vibrancy at our flagship destinations through a diversified offer and mix of uses.
“This exciting project will meet demand for rented accommodation in Leicester city centre, and ensure Highcross remains an exciting destination for visitors, while supporting local businesses and boosting footfall.”
Mark Woodrow, joint managing director at Packaged Living said, “We are delighted to be working with Hammerson and share its vision for a vibrant mixed-use community in an excellent city centre location."