A shopping centre and cinema complex has been officially launched after a four-way bidding war.

Discovery Properties has been chosen to build the £90m Commercial Street complex, in Darlington - a scheme that has been hailed as vital to the town's future regeneration.

The London-based company beat off competition from Centros Miller, Wilson Bowden and Lehman Brothers to secure the deal to build the centre, complete with restaurants, a nightclub and cinema.

The company has experience in the North-East, having worked on multi-million pound plans to bring shopping and leisure developments to Hartlepool Marina in the 1990s.

Darlington Borough Council made Discovery the preferred developer for the centre and announced that detailed discussions would take place over the coming months.

Once a formal development agreement has been completed, Discovery will submit a planning application.

The overall project, which includes a bridge linking the Commercial Street complex to a multi-storey car park on the other side of St Augustine's Way, should be finished by early 2009.

It is seen as the town's most crucial retail scheme since the Cornmill Centre opened in 1992.

Discovery's chief executive, Hugo Hawkings, said: "We are thrilled that our team has been selected to undertake this scheme. It represents a fantastic opportunity to add an exciting new element to the heart of the town."

The project has taken on greater significance following the withdrawal of the original developer six months ago.

St Martin's Property Group pulled out in September, saying it preferred to concentrate on London-based developments. The decision was seen as a devastating blow to Darlington's economic revival hopes, sparking fears that the town centre had witnessed another false dawn.

But the local authority acted swiftly to seek interest from elsewhere in taking on the Commercial Street work.

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