Cantay Estates has acquired the site of a Co-op store in London Road, Headington in Oxford for an undisclosed sum.
The developer says a major multi-storey retail and student accommodation scheme is planned and the MidCounties Co-operative has said it plans to move back into the new retail which will be on the ground floor.
The Co-op will continue to trade in its current store on a short lease until work begins.
Architect for the new development is Penwarden Hale.
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