THESE images show how a derelict former shopping centre site could be turned into posh new student flats.

Kier has sealed a deal to buy the East Street site and hopes to build rows of townhouses for students, as well as converting the vacant Capital House tower block into flats.

As revealed by the Daily Echo, Aldi is understood to be lined up to build a new supermarket on the rest of the site, which had been due to be occupied by Morrisons.

The former shopping centre at the site was built in the 1970s but then knocked down in 2013 to make way for the new supermarket.

However the landowner went into administration and Morrisons pulled out, plunging the future of the city centre site into doubt.

But now Kier, which is also building 66 homes on the former Ordnance Survey base off Romsey Road, has formally bought the site from joint administrators KPMG.

Its plans, filed with the city council earlier this year, would see Capital House converted into student digs alongside the new townhouses.

Overall there would be rooms for 423 students, while there would also be space for retail and/or leisure outlets.

The plans have thrown doubt on the future of the Royal Oak pub at the site, which has been open until recently, and would be demolished if the plans are approved.

It is expected that, if planning permission is granted, the site will be completed in September next year.

It is currently unclear when Aldi, which has declined to comment, will outline its plans for the site, which could create dozens of jobs.

Gillian Scarth, senior development manager at Kier Property, said: “The redevelopment of this prime site in Southampton city centre has been eagerly anticipated since the site was cleared in 2013. It’s a great success story and we are looking forward to playing a key role in the regeneration of the city.

“The East Street scheme forms part of our UK-wide strategy to acquire land and property in order to deliver a full range of direct-let student facilities.

“We have a proven track record in delivering student accommodation-led schemes, having successfully opened 264 student bedrooms in Glasgow last summer and we announced a further 329 bedrooms in Newcastle earlier this month.

“We continue to expand in the sector with a pipeline of more than 1,000 student rooms planned in the north and south of England, over the next five years.”

Ed Boyle and Jim Tucker from KPMG’s restructuring practice and joint administrators of AEL, acted on the sale.

Mr Boyle said: “We are pleased to have come to an agreement with Kier Property, with the support of the local council, which will bring further investment to Southampton at the heart of its commercial district and which provides a good return to AEL’s creditors.”