BLACKBURN Shopping Centre has been sold to an investment company for £100million.

The buyer, London-based REIT Asset Management, is said to have a track record of improving town centres but opposition councillors are concerned that no concrete guarantees have been given about redevelopment.

Standard Life Investments today confirmed it had sold the complex to a company with a history of buying, improving and then selling on retail developments for a profit.

The new owner, which has exchanged contracts and is set to complete the deal on July 3, today said it was looking at ways of improving the shopping centre but warned people not to expect the immediate rejuvenation of Lord Square.

The sale was welcomed by Blackburn MP Jack Straw and Blackburn with Darwen Council.

But there is some concern among opposition councillors that the new owners have not confirmed any concerete investment in the shopping centre.

Council regeneration chief Coun Andy Kay confirmed the sale and said that, despite no announcement of immediate investment, he was more optimistic than ever that Lord Square would be improved.

The council, which also owns a 16 per cent stake in the centre, approved the deal after talking to REIT and investigating its financial background.

It was not legally entitled to have conditions over investment included in the contract of sale but has seen the company's preliminary plans for improving the complex.

Neither the council or REIT would make those plans public today.

REIT, a company with a £2billion portfolio said the only way to get a good return for the investment of its clients was to improve the shopping centre.

Blackburn with Darwen Council agreed a 150-year lease with Standard Life for the shopping centre in 1993. Under the new deal, REIT will take over ownership, paying rent every year to the council, which still owns the freehold on the site.

Kevin McGrath, the REIT partner responsible for the negotiations with Standard Life, said: "We are excited about buying the shopping centre and I think Blackburn is excited about us owning the shopping centre.

"We are aware of the opportunity that Lord Square provides and we will be carrying out a full appraisal of the development opportunity. What everyone has got to realise is that we are new purchasers as of July 3.

"We are aware there is a history around Lord Square. Being perfectly realistic we are not going to promise the immediate development of Lord Square.

"What we will be doing is to look at the opportunities, carry out appraisals and improve the overall shopping experience.

"We are buying an investment which has a development opportunity which we will explore. However, we are not a development company."

Standard Life carried out major development works on most of the shopping centre in the mid 90s. But it stopped short of developing Lord Square, claiming that the rents-return did not justify the estimated £18million it would need to invest.

The lack of action prompted the Lancashire Evening Telegraph to spearhead a campaign calling for investment on the site.

The Edinburgh-based company put the centre on the market last October as it looked to capitalise on assets to cover losses sustained during last year's stock market collapse.

Coun Kay said: "I have reason to be more optimistic than ever before that something will be done for Lord Square.

"They have recognised the potential of Blackburn and I look forward to working with them in the coming months. They can only be an improvement on Standard Life, who, despite repeated kicks up the backside, failed to deliver on promises they made.

"As a result, they have held Blackburn back. REIT have drawn up preliminary plans which would enhance the Blackburn shopping experience.

"We cannot put in a legal clause which insists they improve Lord Square but they want to make money from the shopping centre, and to do that they need to attract new retailers and make improvements to attract those retailers."