Shopping centre sold to developer for £8m

The new owner is the Oakgate Group, from Wetherby, one of Yorkshire's fastest growing property and investment companies with a track record of successful projects in York, Harrogate and Leeds.

The company has exchanged contracts with the Asda supermarket chain, which spent £2.5m on improving the centre after moving in November to a £15m store at Wilson's Forge.

Asda described the deal yesterday as a vote of confidence in the town.

The store chain will work with Oakgate until completion takes place at the end of January.

An Asda spokesman said yesterday: "The company felt it was the right time to hand the reigns over to a specialist management company, with experience of running shopping centres, to ensure its ongoing success.

"It was always going to be better if it was taken out of our hands. With Oakgate's experience there is no question that this is a good thing for Bishop Auckland.

"It is a demonstration of confidence in Bishop Auckland's future that this company has come in."

John Grantham, Oakgate chief executive, said: "We are delighted to secure this significant deal. We are really looking forward to bringing our vast experience to give the Newgate Centre a huge boost.

"It has played a major part in the heart of Bishop Auckland and will continue to do so in the future. These are exciting times for the town, and we are extremely excited to be part of it."

Homes and gardens store chain Wilkinson's is due to open a shop in Asda's former unit in the centre on August 8.

Traders are calling for further developments in the north end of Bishop Auckland, after the Asda switch.

Chamber of trade spokeswoman Margaret Ellis said: "This could be a good thing for the town if Oakgate are prepared to develop the Newgate Centre.

"We feel the centre needs to be expanded to make it workable."

Wear Valley District Centre, which gave the centre to Asda in exchange for other town centre property, has taken over the building's rooftop car parks.