A NEW department store could open in Durham City under plans by the owner of a shopping centre.

Catalyst Capital has bought the Milburngate Shopping Centre from Coal Pension Properties and is looking to give the complex a boost.

The Milburngate suffered when the Prince Bishop's Centre opened in 1999, losing some retailers to the complex, and now has units standing empty.

The new owner is looking at the possibility of attracting a department store to take space in the centre.

Catalyst hopes the city's popularity as a tourist destination and new developments, such as the Gala Theatre in the Millennium City complex, will interest leading companies.

It is carrying out a survey in the city before deciding what to do.

Company chairman Julian Newiss said: "While it is too early to state definite proposals, we recognise that Milburngate is an excellent opportunity in a city with a good cash flow but little in the way of department stores.

"Milburngate is not at its best now. But it has a great view of the river and castle not yet used to best advantage.

"With a reconfiguration and some refocus in the city, it could be outstanding.''

Mr Newiss added that he believed Durham and its setting could attract people from popular and established shopping destinations, such as Gates-head's MetroCentre, Darlington's Cornmill Centre, The Bridges, in Sunderland, and the Galleries, in Washington.