COUNCILLORS hope the mystery buyer of an historic warehouse will work with them over redeveloping Hyndburn's Gateway site.

The Grade II listed Hargreaves warehouse at Canal Wharf Works, Church, was bought at auction last week for £160,000 - £10,000 more than the estimated price.

The 19th century four-storey stone building has been vacant for several years and in disrepair.

Preston-based property auctioneers Pugh and Co had touted the premises as suitable for conversion into plush offices, artists' studios or high-class living accommodation.

The premises are on the site, off Blackburn Road, which has been earmarked for regeneration under the borough council's Church and Oswaldtwistle Canal Gateway project.

Other prestigious features on the site include the former Commercial Hotel and the Europlast mill.

The Leeds and Liverpool Canal runs alongside the buildings and the council hopes to create a canalside development of offices, flats, shops, bars and restaurants to breathe new life into the area.

Initial plans have been drawn up by Chorley-based developers Enza Property Group.

Terrace properties near the site have already been bulldozed under the Elevate scheme and the council hopes to attract multi-million pound investment to create a distinctive gateway into the area.

Hyndburn Council has struggled to rejuvenate the area since original proposals were drawn up in 2004 because many properties are privately owned.

The Hargreaves warehouse had been owned by a London doctor and the council are looking for its new owner to come on board with the regeneration scheme.

Council leader Peter Britcliffe said: "We just hope that whoever has bought it is willing to invest in the area as it desperately needs improving. The site is a very important one and has so many possibilities - hopefully the new owners will want to work with us on this."

Residents will be cons-ulted about the plans for the site but an official timescale for the redevelopment has yet to be decided.

Coun Tony Dobson, portfolio holder for regeneration, said: "We have been working to progress this project and are hoping to see the first set of plans submitted for official approval later this year."