BLACKBURN Shopping Centre has been sold as part of deal worth £378.5million.

New owners The Mall have confirmed they have acquired the 1960s-built complex from London-based Reit Asset Management.

The London-based former owners had outlined plans for a multi-million revamp of crumbling Lord Square.

Council bosses will this week tell councillors to expect an announcement about The Mall's intentions for the centre sometime in September.

Conditional contracts for the sale of three centres -- the others are in Middlesbrough and Maidstone -- have been exchanged, with the final sale expected to be signed off within days.

Ken Ford, chief executive of London-based The Mall, which also bought Preston's St George's Centre earlier in the year, said: "We are delighted to acquire, off the market, a further three centres which comply with out investment criteria.

"They are all dominant covered centres in loyal catchment areas with significant operational and added value potential."

The Mall was set up in 2002 and is an investment vehicle for the clients of Morley Fund Management -- part of Aviva, which also owns Norwich Union -- and Capital and Regional PLC. Both companies invest money on behalf of clients, similar to former owners Standard Life, which also used shopping centres to make money for its investors, and Reit, which bought the shopping centre using cash from an America family and an off-shore trust.

However, unlike Standard Life, which used Blackburn Shopping Centre as a direct asset, and Reit, which buys and sells property as short-term investments, The Mall has been set up to become a long-running, stand alone business.

Companies to invest in The Mall have included The Prudential and Norwich Union, with The Mall providing a return to investors each quarter.

Coun Andy Kay, executive member for regeneration at the council, said: "Prelimary discussions have taken place with us over the company's long-term approach to the improvement of the shopping facilitites in the town, and I understand The Mall will be preparing to announce their intentions in the middle of September."

The council has a 16per cent share in the shopping centre and has previously said it expects The Mall will want to invest in the shopping centre.