A RUN-DOWN town centre office block could be turned into a £12m site for student accommodation if the scheme is approved by council planners.

Campus Lifestyle is preparing to invest the cash to turn the former drugs den, Teesside House, Borough Road, Middlesbrough, into 250 student and residential apartments.

The building, which once housed the offices of the former Cleveland County Council, has been empty since 1997 and became a home to squatters and drug addicts until it was boarded up in November 2002.

The planned investment would lead to a turnaround in the building's fortunes.

Cheryl Barber, the firm's finance director, said: "We aim to create Middlesbrough's first contemporary city-living space, which can only help to accelerate the town centre's renaissance.

"The student accommodation will be of the highest standard, with voice and data communication facilities, optimum security and quality fittings and furniture."

A detailed planning application has been submitted to Middlesbrough Council and, if approval is granted, work should be completed on the scheme by June 2006.

The project will see the construction of 215 fully furnished luxury en-suite student studios, 34 one and two-bedroomed apartments and six penthouse apartments.

The apartments will be offered for sale, starting at £99,000, and the student accommodation will be let and managed by Campus Lifestyle.

In addition to living accommodation, the refurbished building will also house a restaurant, a shop and secure, access-controlled parking.

Les Southerton, chief executive of Middlesbrough Town Centre Company, said: "Teesside House has been a blot on the landscape in this part of the town for several years. We are extremely pleased to support this excellent scheme for the building."

The first two floors of the ten-storey building, then owned by property developers the Waterbridge Group, had to be sealed in November 2002 after the site was taken over by drug-users and squatters.

Cars parked around the base of the building were broken into regularly and staff at neighbouring businesses complained of intimidation and theft.