Over 400 flats could be built outside Southampton's St Mary's Stadium

Between 400 and 500 flats as well as a cafe, shops and a gym could be built at the former gas holder site in Britannia Road in Northam.

The news comes as controversial proposals to demolish the two Victorian gas holders at the site have already been approved.

But developers said that some elements of the two locally listed structures built in 1930 and 1935 would be retained as part of the new development.

The  £100m investment is expected to create 250 jobs – 200 of which would be in the construction sector.

The plans for the build-to-rent flats, which would only be available for private rent, have been put forward by Hawkstone Properties Plc in conjunction with Gröner Developments Limited.

The flats would be built on the site of the soon-to-be demolished gas works near to St Mary's Stadium

Simon Handslip, from Hawkstone Properties Southampton, said the scheme would be “a catalyst” for the regeneration of the wider area.

“It is an exciting opportunity for us to be investing in a gateway site,” he said. 

Mr Handslip also confirmed that developers are looking to re-purpose and retain some “key elements” of the gas holders “to acknowledge the history of the site”. 

Architect Tarryn Leeferink added: “Community members were involved in the running of the site and that is why the actual material artefacts are important to keep.”

Bargate councillor Sarah Bogle said she raised concerns with the developers over “the loss of distinctive industrial heritage”.

Earlier this year she joined Labour’s call for the two gas holders to be incorporated in the new development.

Following the latest announcement, Labour leader Satvir Kaur said: “Southampton has a proud industrial history which we’re slowly losing.

“I’m pleased developers are looking at ways to retain some of this heritage, but feel more can be done here.”

She also said she hopes that more effort is made to ensure the new homes are affordable.

Cllr Jeremy Moulton, deputy council leader and cabinet member for growth, described the development as “positive” for the city.

He said: “It is a site that has to be regenerated. We desperately need new homes. The right thing to do is to regenerate sympathetically and use a new development to tell the story of that site.”

The new scheme could also include panels illustrating the history of the site.

The final plans are expected to be submitted to Southampton City Council at the beginning of next year.

If approved, work would start in 2023 and the scheme could be completed by the end of 2025.