A DEAL to sell Blackburn shopping centre could be tied up within weeks.

Edinburgh-based firm Standard Life Investments put the shopping centre up for sale in October, raising hopes that a new company would come in and carry out long-awaited renovations.

Mike Hannigan, the company's retail investments director confirmed that negotiations were taking place but declined to say what stage they were at because he did not wish to raise expectations.

But a spokesman for the firm said they hoped progress would be made in the next few weeks.

Prominent businessmen and community leaders backed a Lancashire Evening Telegraph campaign calling for action to improve the rundown Lord Square section of the centre last year.

In a recent assessment of the town centre by council officers, the rundown state of Lord Square is listed as the biggest threat to town centre regeneration because of its bad look.

Blackburn with Darwen Council, which has a share in the shopping centre, said today it was aware that negotiations with possible buyers were continuing.

London-based Tops Estates was identified by Standard Life at the start of the year as the preferred buyer for the site but it pulled out of the deal two months ago.

Chairman Everard Goodman has now said the firm pulled away from the £102million asking price after a report showed the cost of refurbishment.

And Mr Goodman said: "The papers were drawn up when we carried out a due diligence report which basically told us exactly what needed to be done to the shopping centre. "But the report's findings revealed things which meant we weren't prepared to pay the price being asked, given the money we would have to invest. There is no doubt that we would have regenerated the shopping centre. That is what we do, we have an award-winning team which regenerates shopping centres with great success."

Mr Goodman spoke out after rumours began circulating in the town centre that he had come back in with a fresh deal.

He added: "We sent the papers back to Standard Life and we will not be buying the shopping centre. As I understand it, a new buyer has been found and it is all now subject to contract. It is not my place to say who it is but it is not us."