A FLAGSHIP office block is to be the first building in the multi-million pound transformation of a derelict site in the region, nearly 20 years after the scheme was first suggested.

Countless masterplans have been drawn up for the 200-acre Middlehaven site overlooking the River Tees in Middlesbrough and £15m has been invested in the infrastructure of the area.

In July, work will finally start on a three-storey 30,000sq ft office block on the riverbank, which could house up to 1,000 workers.

Philip Leech, director of developer Terrace Hill believes the distinctive £5m building will help attract companies away from established business centres.

He said: "There is a need for quality office space in Middlesbrough and the Tees Valley and that is where this office complex fits in. It is a step up in terms of quality and presentation for the town.

"It is quite a leap in quality and standard for Teesside, and with it being the first building on this site it is terribly important we set the standard at the right level."

Work is expected to start in July with the first tenants hopefully moving into the complex eight months later.

Tees Valley Regeneration chief executive Joe Docherty said: "We are in discussions with housing developers and leisure providers, and Middlesbrough College has indicated this is its preferred site, so that is potentially 11,000 students moving to the site.

"The area is ready to go for developers because they don't need to knock anything down - we have already prepared the site. We intend to release a masterplan in the autumn and it is important for us to get the first phase under way, so people can see things are starting to happen."

Middlesbrough Mayor Ray Mallon said: "Middlehaven has been on the agenda for between 16 and 20 years, so it is important we get it right from the start. It was important we told the developers what we wanted and not the other way round, and that way we have got a high quality office complex that will be a flagship building for the town."