THE £3m redevelopment of the former Cannon Cinema in Newcastle is set to create an "arts village" in the centre of the city.

The project, which combines residential and commercial properties with community space, is situated around a public square near the Newcastle Opera House, Dance City and the Newcastle Arts Centre.

Henry Riley quantity surveyors and cost consultants is overseeing the design and build of the development in Thornton Street, off Westgate Road for Blueroom Properties.

Construction has already begun on 31 two-bedroomed apartments, ground-floor retail units and a caf, as well as work to pedestrianise and re-design Thornton Street, which was acquired from Newcastle City Council, as a new city square.

Kevin Drysdale, associate at Henry Riley, said: "Since the cinema was demolished over 15 years ago the site's use has been limited to that of a city council car park.

"Now we hope that the pedestrianisation of Thornton Street, with its shops, city square and contemporary dwellings, will play a key role in the creation of a thriving urban village within the city."