Development will begin next year on the project to develop 135,000 sq ft (13,000 sq m) of new and remodelled space, increasing the capacity of Thornaby town centre to more than 250,000 sq ft (23,250 sq m).
The town centre's Asda superstore will be retained, but Lidl has already signed up for a 17,545 sq ft (1,620 sq m) food store.
The Pavilion leisure centre will be retained and there will be more than 30 retail units surrounding the remodelled St Peters' Square. The new retail area will be concentrated in a block of 59,150 sq ft (5,530 sq m) opposite Wrightson House.
Thornfield senior development executive Ian Sanderson said: 'Everything from shopping to working and living will be enhanced, with new retailers and improved business space being made available.'
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