BLUE chip software business and software firm Sage Group is about to lay the foundations for new headquarters in the North-East.

The £50m, 925,000sq ft complex will be built in two phases at Newcastle Great Park, near Gosforth, and should be completed by December next year.

Two years after completion, there could be a workforce of 1,500.

Newcastle Great Park is a mixed development which will include two millionsq ft of office space and 2,500 homes.

The development consortium of Bryant Homes, Northern Ltd & Persimmon Homes (North East) has been building there for several months.

Bryant and Persimmon are each building 87 homes in the first residential phase, between Brunton Lane, the Great North Road and the A1.

Newcastle City Council deputy leader Keith Taylor, said: "This is a fantastic achievement and a significant investment for the city. To encourage one of the FTSE 100 top blue chip companies to relocate within the area is no mean feat.

"I'm confident this move will act as a yardstick for other UK companies to follow and relocate to Newcastle Great Park, with its excellent infrastructure and air, sea and land links.

"The council is committed to the idea of sustainable urban extensions being the right place for new developments for living and working.''

Sage's chief executive Paul Walker said: "We are delighted that the building of our new headquarters can now go ahead. This represents a major milestone in Sage's history and also demonstrates our commitment to and investment in the North-East as an excellent region in which to live and work.''

Newcastle Great Park is one of two major employment sites that are part of the council's 20-year regeneration strategy Going for Growth.