The £150m development will transform the area formerly occupied by the famous ‘Get Carter’ car park, Trinity Square shopping centre and indoor market and the current Tesco store. In their place will be a brand new town square, 45 retail units, a health centre, offices, student village with almost 1,000 beds and a Tesco Extra store being developed by Spenhill, the regeneration subsidiary of Tesco.

The three year construction project is expected to create 1,000 new jobs with measures in place to help local people access these jobs. Leader of Gateshead Council, Mick Henry, was joined on site by Spenhill’s development manager Andy Lloyd and projects director Paul Dodsworth from construction contractor Bowmer & Kirkland to formally inaugurate the work.

Coun Henry said: “This is the moment we’ve all been waiting for… this is the start of a bright new future for central Gateshead. We’ve been working long and hard to see this day come about and now the tangible evidence of this huge redevelopment really starts to appear.”

Since demolition of the famous Owen Luder designed car park last winter, preparatory works - such as rerouting utilities and earthworks - have been taking place to ready the site for the new development.

Coun Henry added: “The very fact that this development is going ahead in the current economic climate when many others are not speaks volumes for the standing that Gateshead now has in terms of development. The credibility we’ve gained by successfully completing projects like the Angel of the North, Baltic, Gateshead Millennium Bridge and The Sage Gateshead, has directly led to this development.”

Andy Lloyd from Spenhill said: "The Trinity Square project is very significant in both North East and UK terms. Spenhill's investment in Gateshead will bring a new vibrancy to the town centre as well as a major jobs boost for long-term unemployed.

"It is fantastic that local people will now be able to see the first stages of construction and watch the development start to take shape - this is a very exciting time for the Gateshead community."

The first part of the construction to take place is the foundations and structural steel frame. Construction will then move on to the building envelope, windows, brickwork, stonework, cladding and render.

Paul Dodsworth from Bowmer and Kirkland said: “These are exciting times for everyone involved with the project along with the wider community of Gateshead. Trinity Square will provide a first class retail experience in the heart of the town centre. The completed scheme will also provide a rooftop student village complete with sports pitch and running track. When complete Trinity Square will be a pleasing addition to the skyline of Gateshead and will add vibrancy to the town once again.”

Closure of the current store is expected mid-2012 and the new store opening is anticipated for Spring 2013 along with new shops and a new health centre. Student accommodation is planned to be complete in Summer 2014.