COUNCIL leaders in Preston have praised the first new development to move into the town since the regeneration of the Tithebarn area was announced.

The former Electronic House building, Ringway, has been empty for ten years and is now the subject of a £3million refurbishment.

The building could become home to a mystery blue chip company in a deal yet to be finalised.

Tracy Stratton, of Barnfield Construction, said: "We're confident that when the work is complete we'll have no problem securing a tenant. We've already had interest from a blue chip company in taking the whole building."

Electronic House was built as a home to Visionhire TV rental, now known as Box Clever. It was opened in 1977 by celebrities including Jimmy Tarbuck and Sir Alf Ramsay. But in 1990 more than 100 workers lost their jobs when Visionhire moved to Bedford.

Now millions are to be spent overhauling the aging building by current owners, Nelson-based Barnfield Construction. They are set to transform it into a modern office complex.

The property falls into the Tithebarn Regeneration Area and the development has been hailed by council chiefs as a sign that the controversial project is already a success, attracting new businesses to the city.

The leader of Preston City Council said the development shows the effect the promise of a regeneration scheme can have, along with Preston's newly-acquired city status.

Councillor Ian Hall, leader of Preston City Council, said: "It's demonstrating that these things do have an effect and it does attract jobs and business to Preston.

"People often ask what benefits do we get from city status and I think this is a clear answer."

And Coun Hall said he hopes the development could attract further investment in the city.

"One always hopes for others. That is the whole purpose of the Tithebarn Regeneration, that it will attract retail and commerce."