Tyneside is on course for a significant boost to its retail offer, resulting in major improvements to both Newcastle's city centre and Gateshead's nearby MetroCentre.
Capital Shopping Centre has announced plans for a£150 million upgrade and extension to Eldon Square shopping centre in Newcastle, as an£85 million extension to MetroCentre, also owned by CSC, nears completion.
CSC managing director John Able said: 'Market conditions are right for both these extensions.'
MetroCentre's New Red Mall providing 371,000 sq ft (34,500 sq m) of retail space opens in October. In the centre of Newcastle, CSC will now seek planning permission for an additional 325,000 sq ft (30,190 sq m) of retailing at Eldon Square.
The existing centre would be remodelled to include new restaurants, as well as modern retail units. A mall would also be built leading to a new bus station.
Able said: 'These proposals will enable us to not only significantly improve the retail offer, but also improve the environment of Eldon Square.'
Work could start in spring 2005, with the development opening in phases from 2006 to 2009. Newcastle City Council, which has a stake in Eldon Square along with Shell Pensions Trust, is backing the scheme, but has yet to consider it as the planning authority.
Council leader Tony Flynn said: 'The prosperity of Newcastle is dependent upon large-scale investments if it is to remain competitive. We need to build on our strengths, attract further investment and support retail diversity.'
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