One of the key shopping areas in Sheffield city centre has been bought by a real estate company for £41m.

NewRiver has purchased The Moor, a 28-acre retail and leisure site, and discusssions are planned for the potential development of 1,400 residential and student flats.

Previous owner, Aberdeen Standard, took a huge hit after the plot was sold for “far below the breakup value of the site.”

New shops, flats and leisure centres are likely but there is uncertainty over the future of the Debenhams department store, which is set to close permanently this year.

Allan Lockhart, chief executive of NewRiver, said: “The acquisition of The Moor with our joint venture partner BRAVO represents a rare opportunity at a very attractive price.

“Sheffield City Council has demonstrated that it is a forward-thinking and proactive local authority, and we look forward to working with them to deliver a vibrant and connected city centre.”

The Moor, which is anchored by Next, Sainsbury’s, and an occupier-owned Primark, was bought by Aberdeen Standard in 2010, which spent £120m redeveloping it.

NewRiver bought The Moor estate in a joint venture with Bravo Strategies. It also includes the Wickes on Moore Street, the Staples Shopping Centre off Eyre Street, and a 600+ space car park.