MORE than £40 million will be invested in Gloucester's regeneration over the next year.

Work planned includes transforming the former Gloscat site in Brunswick Road into homes and shops, and the reopening of the historic Blackfriars Priory to the public.

The Gloucester Heritage Urban Regeneration Company (GHURC) has welcomed the news, saying it proves the city is heading in the right direction. Its figures show the private sector is set to invest nearly £29m on projects at Greyfriars, Gloucester Docks and the Canal Corridor.

A further £7m of South West Regional Development Agency money is being spent on a pedestrian route between the Quays and the city centre. And £5m will go to build the Language Immersion Centre at Blackfriars, as part of £9m public sector funding.

Since the GHURC was created five years ago, the private sector has invested more than £400m in Gloucester.

GHURC chairman Greg Smith said: "Despite experiencing the hardest, deepest and toughest recession in living memory, in 2009 the GHURC achieved its best year yet and is set to maintain its momentum during the coming year.

"While there are uncertain times ahead and the strings of the public purse will be tightened no matter who wins the General Election, the significant investment the public sector has already made in Gloucester is making the city an attractive prospect for further private sector investment."

Other work planned for 2010 includes the demolition of Merchants Quay at Gloucester Docks to create a new residential and retail complex.

Development of the Language Immersion Centre will start at Blackfriars, and the North Range of the Blackfriars Priory will be brought back into public use as a new concert hall.

Chris Oldershaw, chief executive of the GHURC, said: "We've come a very long way in the last five years but we are not underestimating the challenges ahead to complete the city's regeneration."