SAINSBURY looks set for a blockbusting spending spree in its store wars battle with Asda in Burnley.

The food giant aims to buy up three major properties on the edge of its Burnley centre store - the key to a multi-million pounds re-development of the site.

We can reveal Britain's biggest superstore chain has made bid approaches to:

Sion Baptist Church - the major modern chapel in Church Street.

Burnley College - new owners of Adlington House, the former Reynards furniture store and more recently Burnley's temporary library.

Shutt Brothers Ltd, owners of the Culvert petrol filling station in Yorkshire Street.

Purchase of Sion and adjoining Adlington House would give Sainsbury the whole block of main road property which could be cleared, providing a major access to unlock the potential of the land already owned by the company which recently announced it plans a major refurbishment of the £5 million store.

The filling station would give the company a petrol outlet, allowing it to compete with the new Asda superstore. Sainsbury would have to come up with a very special offer to capture Adlington House which slipped through its fingers recently.

It is understood Burnley college bought the building after the food company which had expressed a firm interest in the empty property failed to put in a down payment to secure it.

Now Sainsbury will have to come up with a healthy premium to the previous asking price of around £200,000 by finding an acceptable alternative site for the college which is in need of a motor vehicle training centre.

College principal, Mr John Smith, said complex negotiations involving a third party were taking place.

He added the college had informed local residents in the area, of the position.

Mr Smith said that if negotiations did not succeed, the college would be quite happy to press ahead with its plans to develop Adlington House as a further education centre.

A spokesman for Shutt Brothers, which has owned the filling station for more than 30 years, confirmed negotiations were continuing but declined further comment. Sion Trustees are understood to have held meetings with the company, but minister, the Rev Vivienne Lassetter, refused all comment.

Sainsbury, which has 250 employees, has suffered badly since Asda came to Burnley nearly two years ago - replacing it as the town's main food outlet.

In September the company denied rumours it would leave the 47,000 sq.ft. present premises - rumours sparked by a staff noticeboard announcement that it was looking at other sites in the area.

Sainsbury said it aimed to refurbish the 12-year-old store and improve customer service.

A company spokesman in London said she could make no comment on any developments in Burnley at this stage.

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