A RUN-DOWN part of Worcester will be transformed into a thriving £75m shopping centre following a landmark decision.

The city council has approved a massive regeneration scheme for Lowesmoor, which will create 1,000 new jobs.

A total of 13 new shops, 10 apartments, office space and a restaurant is planned for the area, bordered by Silver Street, Lowesmoor, Pheasant Street and St Martin's Gate.

The project is seen as one of the biggest makeovers in the modern history of the Faithful City and was approved at a meeting of the city council's planning committee at the Guildhall.

Historic buildings on the site will be retained and converted as part of the scheme, which is being spearheaded by supermarket giant ASDA.

The Territorial Army, which has its base in Silver Street, will relocate to the historic Vinegar Works, while a new 535 multi-storey car park will replace a building currently occupied by a Stonemasons.

The former Hills and Evans Vinegar Works dates back to the mid 19th century and was the biggest of its type, producing two million gallons of malt vinegar a year.

One of the most impressive buildings in the city, it will be used to house the 214 Battle Royal Artillery volunteers.

The Fermenting Shed will be retained under the scheme, which will provide four of the shops, while County Furnishing cellars will be converted into a restaurant.

The Cooperage building will become a retail shop and Graingers Porcelain Works will become three two-bed flats.

The ASDA food store will have 5,619 square metres of floor space over two floors, and be accessed from the corner of Silver Street and Lowesmoor.

Number 18-20 Silver Street, a listed building, will also be converted into a retail unit with office space above.

A total of six new buildings will be created on the site to make up the remainder of the development, with 19 unused buildings being demolished.

Coun Francis Lankester, cabinet member for safer and stronger communities, said: "This is a great addition to our city's vitality and economic prosperity.

"All in all this has been an area crying out for development, and I hope this will be the means by which the whole of Lowesmoor goes up, and stays up.

"I've got no problem with ASDA, after all we want to attract people into the city rather than have them shop outside it."

Coun Geoff Williams said: "This will prompt the regeneration of the area, which has been considerably run down for some time, and Lowesmoor in general."

Ex-Mayor Coun Aubrey Tarbuck called it "one of the most exciting developments" the Faithful City has seen.

He said: "This has been on the cards for maybe 40 years, (since the Vinegar works closed), it's one of the most exciting developments for many years.

"I wholeheartedly support it and look forward to its fruition."

The whole site will be given a unique landscape, with the demarcation of tram lines throughout to interpret the historical nature of it.

It will also mean new crossings created on Pheasant Street, St Martin's and City Walls Road to make access better.

The green light signals several years of work in drawing up the plans, which are spearheaded by Carilion Richardson Partnership.

Managing director Lee Richardson said: "We are delighted the scheme has received the endorsement of the city and look forward to creating a dynamic retail centre which will contribute to the increasing vitality of Worcester."

The new ASDA and other shops will be open in 2009.

A spokeswoman for ASDA said: "We are obviously delighted with the decision and look forward to coming to Worcester."