FITNESS entrepreneur Duncan Bannatyne spoke of his delight yesterday after completing a deal that will keep his headquarters in Darlington.

The announcement from Mr Bannatyne, one of the North-East's richest men, is a huge boost to the town's efforts to attract major business investment.

Bannatyne Fitness's head office will be housed in the former regional electricity board building on Haughton Road - next to one of the firm's health clubs - and development of the site will start in the summer.

The deal, which is for an undisclosed sum, also includes three acres of land next to the health club.

It puts an end to fears that Mr Bannatyne could leave for Durham, following his withdrawal from the edge-of-town Morton Palms development.

He was involved in a dispute with town planners over whether the JJB sports chain should be given permission to create a £6m Soccerdome nearby.

Mr Bannatyne said yesterday: "The rapid expansion of the company has meant expanding our head office operation and we can see a number of benefits to the Haughton Road site.

"It offers us an important strategic base for the company and its future developments, as well as demonstrating the company's commitment to Darlington on a key approach into the town."

Bannatyne Fitness is also considering the development options for three acres included in the deal, provided developers can demonstrate plans will enhance the approach to Darlington.

The deal will also affect facilities at the health club. The new site has 150 car-parking spaces, which will be used for club members as well as provision for 50 head office staff.

The parking extension has also allowed Bannatyne Fitness to apply to extend the club to accommodate more members.

Mr Bannatyne said: "This deal gives us the opportunity to fly the flag for the town."