A £10M development is to be created to help regenerate part of Sunderland in a move that would bring 150 jobs to the city.

Plans to transform a rundown and derelict site in the city’s North Hylton Road were unveiled yesterday in a scheme that would see the creation of a mixed-use development that would include offices and shops.

The scheme, which will mean that £10m would be ploughed into the area, will see the creation of about 150 local jobs, which developers say would be a significant boost to the surrounding community.

Plans for the 169,000sq ft site, formerly owned by Jennings Motor Group, are expected to be submitted in August and work is set to start early next year, subject to planning permission.

Developer Nil Satis Nisi hailed the proposed development as very exciting and said that it is looking for an international supermarket group to become the anchor of the site.

The other tenant mix would include a discount operator, newsagent, card shop, bookmaker and baker.

This is hoped to create a community shopping hub for the surrounding areas of Hylton Castle, Castletown, Red House, Southwick, Town End Farm and Downhill.

Office space for small businesses is also planned for the development.

Roy Kenny, project manager for Nil Satis Nisi, said local companies would be invited to tender for the scheme to ensure the development has a truly local feel, and that consultation would take place with local residents.

“This is an exciting project for this area and aside from the obvious regeneration benefits, the district centre is expected to create about 150 jobs for the immediate local community,”

he said.

“The proposal we are unveiling includes a major international supermarket retailer as the main anchor tenant for the site.

“The supporting tenant mix is aiming to incorporate an additional discount operator, a newsagent, card shop, bookmaker and baker to give a real district centre feel for the local community.

“In addition to this, there are also plans to include office space within the new district centre.”