THE renaissance of Gateshead's riverside is set to continue with a £100m development by Taylor Woodrow of a residential and leisure scheme.

The first phase of the Baltic Quay scheme will be the creation of 237 single and two-bedroom apartments and penthouses commanding sweeping views of Baltic - The Centre for Contemporary Art, the Music Centre, the Tyne Bridge and the City of Newcastle.

Taylor Woodrow has received a high level of inquiries about the apartments, the first phase of which is expected to be ready for occupation by the beginning of 2003.

Work on the 124,000 sq ft leisure complex is expected to begin in the summer of next year, and will incorporate restaurants, bars and a night club, together with a five-star hotel.

Taylor Woodrow is in advanced discussions with a number of operators and expects to secure pre-lets for a substantial proportion of the scheme prior to commencement.

The scheme will complete the transformation of the south bank of the River Tyne, directly opposite Newcastle Quayside, which has been successfully redeveloped over the past decade.

Now accessible via the Gateshead Millennium Bridge, Baltic Quay will capitalise on the achievements of Newcastle's regenerated Quayside, a well-established and sought-after residential and leisure quarter, and the major new cultural projects taking place on Gateshead Quays.

Speaking at the ground-breaking ceremony Guy Parker, director of Taylor Woodrow's property development arm, said: "Baltic Quay is the final piece of a very important jigsaw for the regeneration of Gateshead Quays. Working in partnership with the council, Taylor Woodrow is helping to create a vibrant cultural, leisure and residential quarter in an exceptional waterside setting.

"The success of Gateshead Quays rests on the combination of public and private sector funding. The regeneration of the southern quayside is bringing considerable investment and jobs to Gateshead in a world class development."

Councillor George Gill, leader of Gateshead Borough Council said: "This is another significant development in the transformation of Gateshead Quays. "The vision of turning a largely derelict industrial area into a major cultural and leisure attraction is now becoming a reality."

He added: "This will create new jobs and opportunities for local people and forms the major part of a joint bid by Newcastle and Gateshead to be European Capital of Culture in 2008."