THE multi-million pound redevelopment of Gloucester's King's Square is being welcomed in the city as Gloucester City Council is on the brink of signing a deal with Stanhope Plc to rejuvenate the run-down area. 

The £55million investment will bring new shops and restaurants to the area along with two open public areas, a new car park and bus station.

High street doom and gloom triggered after the tally of retail failures this week does not reflect the picture in Gloucester, according to a man who has invested millions in the city.

John Wood, of London-based ORG, was at the centre of the deal which saw his business team up with Rockspring Property Investment Managers to invest £136.9m buying Gloucester's Eastgate Shopping Centre.

Mr Wood repeated his confidence in the future of the high street after national stories suggested it was subject to a meltdown as businesses like chocolate maker Thorntons followed others by signalling plans to shut stores and sell through other outlets.

Although the crisis is in part driven by consumer spending power Mr Wood said retail was an ever-evolving picture, not a story of decline.  "I am always positive. The thing with the likes of Thorntons is it is a manufacturing business foremost, which also runs shops.

"They took the decision that there are better people to sell their product while it does what it does best," said Mr Wood. "From our point of view, as landlords, we have to go with that sort of opportunity and find suitable premises for retailers, not just go for the big names, we need to compliment them with the retailers who have more of a local offering as well," he added. With a new Marks and Spencer store planned for Eastgate Shopping Centre and other positive news of new business in the pipeline he remains sure that in Gloucester, at least, retail will be resurgent.

To view the Stanhope proposal in full visit http://www.gloucester.gov.uk/LGNL/Environmentandplanning/Regeneration/Regeneration.aspx