Work will start on a 41,000 sq ft Asda supermarket in Skelton, East Cleveland following the dismissal of a challenge by the Co-operative Group to the decision to grant planning for the scheme.

Construction is planned to start in June by McLaren on the £5m scheme with the opening scheduled for early 2013.

Bowmer & Kirkland has started work on a new 100,000 sq ft Sainsbury’s at Wessington Way in Sunderland.

The £35 million pre-let development is being funded by Osprey Equity Partners and is scheduled for completion in March 2013.

The sale of Terrace Hill’s site in Whitchurch to Sainsbury’s, was also completed last month.

This follows the award of a detailed planning consent for a £3.7m supermarket of 50,000 sq ft with a 30,000 sq ft sales area and 300 parking spaces which will be built by RG Group

Philip Leech, Chief Executive of Terrace Hill, said: “We are making strong progress across our existing portfolio of foodstore developments sites, and there are a number of new opportunities within the foodstore sector which we expect to contract on during the course of the year.

“Our specialist skills in this sector are providing highly profitable returns for the Group. “