West Midlands developer, Cassidy Group, has bought the scheme, where demolition is being finished ahead of work starting in February.

The Hoyle Street site, which is within walking distance of the University of Sheffield, gained planning three months ago for 658 student beds and 247 flats.

Designed by Jefferson Sheard Architects, the 12-storey building complex plan also features an iconic grade II listed cementation furnace for steel making, the only one of its kind to survive undamaged in Britain.

Daniel Doncaster and Sons built the furnace in 1848 to produce steel through the cementation process.

David Grover, Mace’s Chief Operating Officer for Development, said: “This sale reflects the strength of the market in Sheffield – things are moving really quickly and there is clearly huge potential for further development and growth in the city.

“I am pleased that we have been able to sell the project to a British development company with a great track record of delivering similar schemes across the country. Mace is continuing to invest substantially in its wider pipeline of student, residential and mixed-use sites across the country.”

Patric Cassidy, Director of the Cassidy Group, said:  “This £84m scheme is part of Cassidy Group’s current £650m UK development pipeline of projects spanning across 12 sites within seven cities, which will be delivering over the next two years working closely with our investment partners ‘Regency Project Management’ based in London.

“Cassidy Group are keen to acquire more student and PRS sites to create what will be a £1bn portfolio.”