Government-owned property company London and Continental Railways Ltd (LCR) has bought land close to Sheffield station for £5.4 million.

The 1.82 acre site is on St Mary’s Road and currently contains retail warehouses. LCR, which describes itself as a “placemaking and regeneration expert”, intends to use it as part of its partnership with Sheffield City Council, South Yorkshire Mayoral Combined Authority, Homes England and Network Rail to deliver regeneration around Sheffield train station.

The partnership works to a plan set out in its Sheffield Midland and Sheaf Valley Regeneration Framework, which focuses on improving connectivity to neighbouring communities, optimising rail facilities and enable the creation of new homes and jobs, and what it calls “public value”.

LCR says that the regeneration will include “enhancing the sense of arrival into the city”, which will involve better transport connections around Sheffield station, improving transport connections around the station and creating new active travel routes, and what it calls “better public realm and mixed-use development”.

LCR was originally established as a private entity in 1994 as part of the privatisation of British Rail, but was later brought into public ownership after a series of financial problems. It is involved in various projects to acquire railway property for regeneration, including earlier this year in Derby.

The company received advice on the acquisition from estate agent Cushman & Wakefield and law firm Trowers & Hamlins.

Karl Drabble, regional director at LCR, said: “This is good news for the North’s rail infrastructure and this acquisition is an early milestone for progress around Sheffield Midland station. Over time, regeneration around the gateway to my home city of Sheffield will enhance capacity for improved public transport, create space for new homes and jobs, and promote greener, more accessible walking routes into the city centre.

“We know the role that regeneration can play in catalysing long-term economic growth, and a more connected community will be central to those ambitions. We’re looking forward to refining these plans in collaboration with the area’s residents, businesses and visitors to deliver the improvements the city deserves.”

Sean McClean, Director of Regeneration and Development at Sheffield City Council, said: “This is really welcome news, the area around Midland Station has masses of potential to be a new mixed-use neighbourhood filled with high quality homes and workplaces. It will become a major strategic regeneration focus over the coming years, so it’s very positive that our partners are willing to invest at this early stage.”