One North East has reached an agreement in principle with Tesco to buy the Vaux Brewery site in Sunderland on behalf of public sector partners including Sunderland City Council.

The deal follows a long-running battle over the future of the 10.4 ha brownfield site, which was preventing it from being used for regeneration. No further details of the deal have been revealed at this stage.

The plan now is for the Homes and Communities Agency, the council, and the urban regeneration company Sunderland Arc to develop the site into a new business district.

Tesco had wanted to build a retail scheme there, but Sunderland Arc has been pursuing plans to develop the site, which was bought by Tesco from brewer Whitbread in 2001.

Tesco says it wants to focus on plans for a supermarket on the Sunderland Retail Park site in Roker. It is expected to submit a revised planning application for this major investment shortly.

Paul Watson, leader of Sunderland City Council, said: “This is a significant step forward in the redevelopment of this key strategic site. It has been achieved as a result of lengthy but very productive negotiations between the City Council, its partners and Tesco.

“The development of the site is still some way off and it’s vital for Sunderland’s future prosperity that we get it right.

“I am confident that I can rely on all Elected Members in Sunderland City Council to continue to give their commitment and support the re-development of the Vaux site, for the benefit of the whole city and region.”

Doug Wilson, corporate affairs manager for Tesco, said: “We have been working closely with Sunderland City Council and other public sector bodies to resolve the status of the Vaux site and this agreement reflects a new spirit of partnership between us.

“Tesco remains committed to making a major investment into the city and today’s announcement is a significant step towards making this happen.”

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