A London based developer has bought a 2.3 acre section of the Canal Corridor North site in Lancaster.
British Land says it now has a development agreement in place with Lancaster City Council for the acquisition of its adjoining land “to enable the delivery of a significant canal-side, mixed-use scheme across a 10 acre site”, worth £75m.
It is thought the original developer Centros will be working alongside British Land to deliver the scheme.
The 2.3 acre section acquired by British Land includes the former Mitchell’s of Lancaster brewery.
The company said the site “provides the only real opportunity to significantly improve the city’s retail offer”.
Richard Wise, head of retail development for British Land, said: “Working closely with Lancaster City Council and English Heritage, our aim is to deliver a scheme that complements the site’s historical setting.
“Lancaster has seen very little retail investment over the last two decades and we look forward to creating a retail and leisure destination to serve local people and attract significant numbers of visitors into the city.
“We are confident that a relatively modest initial investment could lead to a future development with a targeted end value of over £75 million.”
British Land currently has a number of other properties underway which includes the new build 320,000 sq ft Whiteley Shopping Centre in Hampshire which opens in spring 2013; and a 45,000 sq ft leisure extension to Glasgow Fort Shopping Park, due for completion in summer 2013.