LXB Retail Properties has been granted planning permission for its 18 acre Metz Way retail and mixed-use development and are looking to start building by next spring.
Plans include a 70,000 sq ft foodstore pre-let to Morrisons, 140,000 sq ft of employment space, an 11,000 sq ft car showroom and 8,000 sq ft of restaurant units.
Metz Way is located close to the city centre and railway station and forms part of a wider regeneration programme known as the Railway Triangle Corridor.
Tim Walton CEO of LXB said: “We are delighted with this positive news and are looking forward to delivering a new store for Morrisons in Gloucester.
“In terms of the employment space, we are in discussion with a number of occupiers and we are encouraged by the level of interest so far.
“It is anticipated that the first phase will be completed by the third quarter of 2013. ”
Paul James, Leader of Gloucester City Council said: “Gloucester has waited a long time to find a workable regeneration solution to this large and prominent site, which has been an ugly scar on the face of the City for decades.”