One of the biggest town redevelopment schemes in the North of England – the Sanderson Arcade scheme in Morpeth - is now underway

The £32m scheme which will create a new commercial centre in the Northumberland market town will be part-funded by the specialist property finance team at Lloyds TSB Corporate Markets in Leeds. It will provide £18.7m development finance.

The development is being carried out by Morpeth II, a joint venture between Yorkshire-based market town specialists Dransfield Properties and Ethel Austin Properties.

The redevelopment of Sanderson's Arcade and the Back Riggs Shopping Centre, will result in a multi-purpose venue, including retail outlets, offices and a landscaped piazza, and will incorporate several major infrastructure improvements.

A number of major national retailers and several significant local businesses have already committed to the scheme. The scheme is expected to be complete by January 2010.

Mark Dransfield, managing director at Dransfield Properties, said: ‘This is going to be a development that the whole town and future generations can enjoy and be proud of. All along we've had the full support of the local council and the local community, and the large number of pre-lets is a sure sign of the confidence of the retail sector in this project.'

Tom Cross, relationship director in the property finance team at Lloyds TSB Corporate Markets, said: ‘Sanderson Arcade is a sure sign that commercial property deals can be done in the current climate, with the right developers and the right backing.’