BIG high street names could transform shopping in a town centre where a company has taken over a rundown precinct.

Ediston Properties, of Edinburgh, has taken over Festival Walk, in Spennymoor.

It is in talks with several national retailers interested in taking space once a £250,000 redevelopment scheme is completed.

The company bought the 87,000sq ft precinct for £4.1m in conjunction with Hendersons Global Investors and hopes to start work early next year.

As well as creating the large-size units demanded by multiple retailers, they are putting up a canopy, paving and lighting to complement a £3.7m regeneration scheme carried out in the rest of the town centre by Sedgefield Borough Council.

Jonathan Sutton, a director at storeys:ssp, which advises on the project, said the hundreds of new houses being built in Spennymoor were attracting new businesses to the area.

Storeys initially advised Sedgefield Borough Council on property issues affecting both Spennymoor and Newton Aycliffe.

Mr Sutton said: "In essence, these towns have lost out to rival centres, for example Newton Aycliffe to Darlington and the other Teesside towns and Spennymoor to Bishop Auckland and Durham City.

"The policy now is to halt this leakage by a process of regeneration of which the Festival Walk centre is a key.

"The town had lagged behind what may be perceived to be poorer centres in the North-East, principally because of an outdated retail offer, which our client is about to rectify.

"The massive retail leakage will be redressed by improving the retail offer through better anchor stores and improved tenant mix."

Spennymoor Town Council and Sedgefield Borough Council have both welcomed the move.

Town council leader John Marr said: "This should give us a wider range of shops, both large and small. It will brighten up the centre and be good for the whole of Spennymoor."

Graham Wood, Sedgefield Borough's regeneration manager, said: "Investing and improving the main town centre is not only a priority within the borough but also forms part of a wider programme of improvements across all the major centres in County Durham."

Liberal Democrat borough councillor Ben Ord said: "I am sure the people of Spennymoor will appreciate the extra investment.