A consortium of Chinese investors is backing plans being put forward for the creation of a new £65m leisure, residential and business district in the steel city of Sheffield.

Headed by businessman Jerry Cheung, managing director of Sheffield-based developer New Era Development, the project has evolved out of original plans to create a Chinatown in the city back in 2005.

However, the six Chinese backers who have put money into the new scheme have insisted that the New Era Square plan is to have a strong focus on inclusiveness; attracting people from all walks of life and areas of society.

The proposed 40,000sq m (430,556sq ft) site, housed between London Road and Brammal Lane, is to be based around a pedestrianised plaza offering retail units, leisure facilities, a 695-room private student residence and 2,700sq m (29,062sq ft) worth of commercial office space.

It is thought that some of the office space is to house the city’s Chinese Business Incubator (CBI), which is seeking to partner with local companies, public sector groups and universities to help open up business and communication links with China’s growing markets.

The project has been designed by Sheffield-based architects Hadfield Cawkwell Davidson, with the development already being supported by members of the local council, who believe the plans show that the city can offer enterprising links with the international community.

New Era Square, which if built could create up to 400 new jobs, has also received initial support from deputy Prime Minister Nick Clegg, who has highlighted the scheme as a possible economic driver for the region.