The former Hanningtons department store in Brighton is set to be redeveloped into a 1.3 acre retail and leisure development.
Work started on the project today and is expected to be completed by mid 2018.
Redevco, the European retail real estate investment manager, acquired the majority of the site in 2015 and an adjacent mixed-use property at the end of last year.
“We are creating a new Lane, a new entrance to the historic Lanes from North Street, and are redeveloping existing buildings on North Street to provide exciting new spaces for shops, restaurants and cafes,” said Redevco portfolio director Andrew Foulds.
Councillor Warren Morgan, leader of Brighton & Hove City Council, said: “Hanningtons was for generations at the heart of Brighton’s shopping experience next to The Lanes. I’m delighted that Redevco is investing substantial sums in the city to return the area to its former glory, revealing the historic Pugets Cottage and opening up a new Lane which will add to our unique offer to visitors and residents alike.”
“It is regeneration that respects our heritage and, along with the coming of John Lewis, it is more good news for North Street and for Brighton and Hove,” he added.
Hanningtons, once known as the Harrods of Brighton, closed in 2001.