THE urban regeneration company tasked with revitalising dilapidated parts of Sunderland has taken control of a vital area of land.

Sunderland arc has a vision for transforming strategic sites in the city, including the Holmeside area.

The urban regeneration agency English Partnerships has bought a portfolio of commercial properties in Sunderland from Athenaeum Developments Ltd that comprises the Holmeside site.

The area will now be turned into a £135m city centre redevelopment scheme with a department store, restaurants, shops and apartments.

The deal means the arc now controls 70 per cent of what is known as the Holmeside triangle.

Michael McConnell, head of property at Sunderland arc said: "This property deal represents a major acquisition and is a key part of the longer term regeneration proposals for the arc, to create a step-change in Sunderland's city centre as a whole.

"We are confident our plans will transform the south of the centre, complementing the Bridges shopping complex and having the potential to create over 1,200 jobs.

"The portfolio has been bought subject to existing tenancy agreements, which will remain in place until the arc's development proposals are formulated in more precise detail. We will be keeping the tenants based in Holmeside and Park Lane advised as our redevelopment proposals progress."

Athenaeum owned a market of about 30 stalls, 11 shops and a storage unit, but was forced into a sale of the portfolio after it faced a compulsory purchase order.

Run by a Sunderland family, Athenaeum Developments was established 20 years ago by owner Neil Wright and named after the street on which the business was formerly located.

Since then, the company has developed several sites across the North-East, including a large retail development in Ocean Road, South Shields, and a hotel and restaurant complex near the MetroCentre, in Gateshead.

Mr Wright pledged to re-invest the proceeds of the sale back into Sunderland in future.

He said: "This is a very difficult time for us, but the fact that we were faced with the threat of a compulsory purchase order meant we had to make a decision and this was only taken following assurances the Park Lane Market would continue to trade.

"This is not the end of Athenaeum Development's links with the city as we have always been, and will continue to be, strongly committed to the Sunderland area."

Partners Neil Robson and Lesley Fairclough at law firm Ward Hadaway advised Athenaeum Developments on the legal aspects of the transaction, which was also helped by Mike Cuthbertson at chartered surveyor Lamb and Edge, who advised on valuation and compensation aspects.

Neil Robson, head of Ward Hadaway's property department, said: "When faced with a compulsory purchase order, the client's options are limited.

"However in Athenaeum's case we were fortunate to deal with a very reasonable party, which enabled us to negotiate around the planning constraints."

Published: 30/03/2004