MILLIONS of pounds are set to be spent giving a Blackburn's rundown Lord Square its first major facelift for almost 30 years.

The shopping centre's new owners are planning to finally replace run down shops and crumbling concrete which have been a blight on efforts to rejuvenate the town.

A planning application is due to be submitted before the end of the year which, if passed, will see new shops built, two levels of existing stores refurbished and escalators and elevators installed.

A new roof would also be laid over the square, making the open-plan space a covered shopping area for the first time, with work expected to start by June 2004.

The plans announced by Reit Asset Management, the London-based company that bought the shopping centre for £100million in June this year, has been welcomed as a massive boost by councillors, shoppers and traders.

And it is a major victory for the campaign by the Lancashire Evening Telegraph, which has called for action for a year.

The company has refused to reveal how much it intends to spend on the project but Blackburn with Darwen Council estimates it will be at least £10million.

Previous owners, Edinburgh-based Standard Life, drew up several schemes to redevelop Lord Square but none came to fruition, even though it carried out major development works on most of the shopping centre in the mid 1990s.

It claimed return from rents did not justify the millions it needed to invest.

Last year a piecemeal renovation which saw tiles on the central column replaced and cleaned up and other walls in the square cleaned and painted was criticised by traders.

But a partner of Reit, Kevin McGrath, said today: "We have got architects on board and we are meeting regularly. We are very focused and working very hard."

Reit has carried out a viability study and, according to Mr McGrath, there is a demand for new shops from household name stores -- although he refused to reveal which ones.

At the moment, WH Smith has an entrance in the square, which also features the T-Bar pub, charity shops and discount stores.

He said: "We have sounded out retailers because there is no point building new shops if the demand for them is not there. If all goes to plan we will be submitting a planning application to Blackburn with Darwen Council in the next few months.

"There seems to be good interest for Blackburn. We have approached a few retailers and we know there is a demand. What we need is to focus retail on the shopping centre, because anyone who comes to Blackburn to shop goes there," he added.

Mr McGrath said co-operation from the council was key to the success of redevelopment plans "We have got to work with the council to make sure that retailers who are not here would consider coming to any new development in Lord Square.

"We want the council on side and expect their support on this", he added.

The company generates revenue by buying property, renovating buildings and selling them on or managing them for investors.

Blackburn with Darwen Council's regeneration executive member, Coun Andy Kay said the last owners, Standard Life, drew up at least two plans for the redevelopment of the square, which ranged in cost from £10million to £25million.

He added: "We believe that any scheme Reit puts in would need to top at least £10million. We have been campaigning for this for the past five years so I am encouraged to see something going ahead. We will give them any help and support they need. Hopefully we can deliver something."

The recent redevelopment of Church Street and the nearby cathedral pavilions were seen by the council as a catalyst for Lord Square's regeneration. "Church Street has recently been developed, the Cathedral pavilions are on schedule there is only Lord Square to do then everyone is happy", Coun Kay added.

Blackburn's Chamber of Trade president, Raymond Goldstone, said: "The work is long overdue, we have been talking about it for years. Any work that allows us to compete against other towns and bring shoppers back is a good thing."

Shoppers have also welcomed the move. Beryl Hall, a pensioner from Queens Park, said: "It isn't very nice and has taken a lot of character out of Blackburn. It's bleak and disgusting."

Sarah Chard, an 18-year-old student from Shear Brow, said: "The shops in Lord Square could be a lot better and it needs to look more modern. It's always been a mess and I am glad they are sorting it out."