MORE than 1,000 jobs are expected to be created in the region after plans were unveiled for a £40m mixed-use development in Newcastle.

A seven-and-a-half acre site in Shieldfield, in the east of the city, has been chosen for development into offices, retail space and houses, some of which will be student accommodation.

When completed in 2011, the project will bring more than 1,000 jobs to Tyneside, and work has been scheduled to start early next year, subject to planning permission being finalised in the coming weeks.

The plans, by Metnor Property Group, are for the Portland Green area of Shieldfield, which has been derelict for several years and is less than a mile from Newcastle's thriving Quayside.

John Parkinson, managing director of Metnor Property Group, said the development could help stimulate further investment into the area.

"This is a well-thought out, high-quality solution for an important part of the city which will greatly benefit from regeneration through our proposed site Portland Green," he said.

"We believe that this site is a key 'link' site between the centre and places such as Sandyford and East Quayside. The size and quality of Portland Green means it has the potential to have a major impact on the local economy and future investment in this area."

Metnor said it also hoped the carbon-friendly project would encourage and improve links between the area and central Newcastle, with the development being designed to be pedestrian and cycle-friendly.

Tony Wordsworth, of joint agents GVA Lamb and Edge, said Portland Green would answer demand for office space and housing in Newcastle.

"This major development presents an integrated, mixed-use scheme which directly addresses the need for high-quality offices close to the city centre, yet with excellent access by car, public transport or foot," he said.

"The site is strategically important to Newcastle, on the edge of the city centre and the east end.

"Every aspect of the scheme is 'green' and Metnor has already made a significant investment into the site to ensure its completion by 2011."