Intu has plans for up to six residential blocks, replacing a House of Fraser store and car parking space.
Located at the south end of the centre, this new development would bring a mix of over 1,000 homes to rent, catering for individuals, couples and families alike.
It will seek a joint venture partner to deliver the planned expansion.
Martin Breeden, development director at intu, said: “Our aim is to create something very special, that will sit alongside an established and thriving destination where we have already invested £72m in a fantastic new leisure development.
“Our long-term vision is to create a vibrant new community right on the doorstep of one of the UK’s best retail and leisure destinations.”
Development proposals and full public consultation will then follow in the coming months.
Intu revealed the fresh development strategy at the start of 2019 after suffering a tough year in the teeth of a deteriorating retail sector and booking a loss of more than £1.1bn due to downward property revaluations.
By intensifying development at existing sites, intu estimates potential for 5,000 flats and 600 hotel rooms.
Its six major out-of-town centres comprise 760 acres of land, of which less than 40% has buildings, multistorey car parks or distribution roads upon it, leaving 470 acres of surface car parks and other potentially developable land.