WORK on a major redevelopment in a historic shopping district starts today.

European property investment giant Redevco is turning the former Hanningtons department store in Brighton city centre into shops, restaurants and cafes.

The firm has invested £72 million into the scheme, which includes the site in North Road and properties in East Street.

The changes will also lead to the creation of a new lane for The Lanes,

Once home to Hanningtons - the ‘Harrods of Brighton’ - the area is an important landmark between the attractions of The Lanes, North Laine, East Street, the Cultural Quarter, the beach and Brighton Palace Pier.

Brighton and Hove City Council leader Warren Morgan said: “Hanningtons was for generations at the heart of Brighton’s shopping experience next to The Lanes.

“I’m delighted that Redevco is investing substantial sums in the city to return the area to its former glory, revealing the historic Puget's Cottage and opening up a new lane which will add to our unique offer to visitors and residents alike.

“It is regeneration that respects our heritage and along with the coming of John Lewis it is more good news for North Street and for Brighton and Hove.”

Redevco portfolio director Andrew Foulds, said: “We want Hanningtons to build further on Brighton’s reputation for individuality and diversity of culture, by bringing this approach into a vibrant retail and leisure destination.

“The vision is to blend a visually unique and engaging scheme into the existing network of narrow alleyways, lanes, eclectic boutiques, restaurants and cafes/bars that already make Brighton so popular.

“We also have an opportunity to invest substantially in the quality of the buildings on North Street and our masterplan approach should provide a catalyst for the whole area.”

The new lane will provide contemporary spaces with the aim of drawing in new names and create a destination which will help support existing businesses.

The company is targeting retailers and operators which represent pioneering fashion, cutting edge art and inspiring food and produce to the area.

The design incorporates local materials and will reveal the historic Puget’s Cottage, currently hidden behind the Timpsons, for the first time in 140 years.

Construction work will initially focus on the back of the scheme, enabling existing retailers to continue trading with minimum disruption.

The work is expected to finish by the middle of next year.