A MULTI-MILLION pound extension to the region’s biggest outlet shopping centre has been given the final go-ahead  - paving the way to the creation of 500 new jobs.

The second phase of the Dalton Park complex, near Murton, County Durham, will proceed after Salford Estates, the owners of Castle Dene Shopping Centre, in nearby Peterlee, lost its appeal against planning the permission being granted.

The £35m project will complete the site’s regeneration programme and will include a food store, cinema, restaurants, petrol station, hotel and pub.

Around 500 jobs will be created as a result of the development, with further announcements on the tenant line-up to be made in the near future.

Jerry Hatch, general manager outlets for Knight Frank, asset managers for Dalton Park, said: “It’s a birthday present for us in terms of getting this finally over the line in the outlet’s 10th anniversary year.

“We have enjoyed a very successful decade at the outlet and 2013 is going to be a momentous year for us.

“We’ve already had a strong first quarter with positive sales and new openings and now Phase 2 marks an exciting new decade for us.

“The new scheme will not only enhance our retail offer but will service visitors both locally and regionally.”

He rejected claims by Salford Estates that the development would have an adverse on effect Peterlee town centre.

Mr Hatch said work will start on detailed design to satisfy planning conditions. It is anticipated that work will start on site within a year and take 12 months to complete.

Salford Estates spokesman said: “As the principal stakeholder and investor in Peterlee, we are committed to driving forward our plans, which remain focussed on ensuring that the long-term future of the town is protected and the business and shopping environment is enhanced.

“We have a long-term commitment to Peterlee, which is more than can be said of the members of the local planning authority who, in disregarding clear-cut planning policy, have suspended their disbelief and effectively sanctioned a direct commercial attack on the town centre.

“Any rational individual would accept that you do not enhance the commercial prospects of a town by promoting unchecked out-of-town competition.”