Citrus Group and Galliard Homes have received planning approval for the redevelopment of Prince Bishops Place shopping centre.
The planning application was approved by by Durham County Council after 18 months of pre-planning discussion. The scheme comprises 408 student beds, a 101-bedroom hotel, shops, leisure facilities and a public square.
The joint venture said that with high vacancy rates and low demand from retailers, “it is crucial for the centre to reinvent itself and provide new attractions to draw visitors”.
The approved scheme will retain the existing multi-storey car park.
Works are expected to begin in mid-2025, with the student accommodation scheduled to open in autumn 2028.
Robert Dibden, planning director at Lichfields, said: “The scheme offers a unique opportunity to not only secure the sustainable future of the shopping centre, but also strengthen the vitality and viability of Durham city centre more widely and create a vibrant destination where people will want to spend time.
“Importantly, it will also improve the overall design and appearance of the centre and make a far more positive contribution to the historic character of Durham city.”
David Hirschfield, director at Galliard Homes, said: “The whole process has been a robust and rewarding experience, allowing us to move to the next phases of delivering this prime regeneration scheme and we look forward to continue to widen our regeneration footprint within Durham and the North East”.
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