Gateshead Council has today chosen Kier Property to create a major mixed use development next to The Sage Gateshead.

Kier Property was chosen as the preferred bidder to develop the vacant 5.5 acre (2.23 ha) GQ2 site from a shortlist of four developers.

Kier’s proposals include 24,465 sq ft (2,273 sq m) of restaurants, bars and cafes, an 8 or 10 screen cinema, 55,000 sq ft (5,109 sq m) of retail space , a major hotel, a 200-space car park and a mix of 324 homes and apartments.

The development site, which is currently a temporary car park, sits between The Sage Gateshead and the Baltic Quays Housing Development.

Councillors believe the development will complement the existing attractions on Newcastle Quayside and the nearby Baltic Business Quarter.

Gateshead Council launched the search for a developer in January this year. Work is expected to commence on site by early 2008.