Sports Direct, which is opening a store in the former Marks and Spencer building in the centre of Newport in early summer, has applied to Newport City Council to change the use of the basement into a gym.

The sports clothing store has taken 23,000 sq ft in Olympia House, in a deal with Castleton-based Richard Hayward Properties and The Tonstate Group which is seen as one of the most significant retail lettings in Newport’s recent history.

The firm has submitted plans to the city council for conversion of the basement of the store into a gym and the creation of a fire escape.

Sports Direct would make no comment over the future of the Megabowl site at Spytty, which has recently been granted planning permission for part of the site as a retail unit and a gym following a planning appeal lodged by Sports Direct and the site’s owners, Johnsey Estates. They would also not comment on the future of the existing Sports Direct branch at Spytty.

Sports Direct has signed a 50-year agreement for the city centre site with the joint venture partnership.

The Tonstate Group and Richard Hayward Properties have started work on the redevelopment of the 90,000 sq ft Olympia House.

The partners are planning to transform the nine-storey building into residential units, with commercial uses on the lower levels.

Principal of RHP, Richard Hayward said: “This is a very significant signing for everyone who enjoys Newport city centre. It shows our commitment to revitalising Newport by bringing in a strong retailer.

“This deal, together with the opening of Friars Walk shopping centre later this year, will help to put the city back on the shopping map and complement the other regeneration schemes recently completed and currently under way.”

These include RHP’s redevelopment of the old Yates Wine Lodge building into a new 60-bed Premier Inn and plans for the conversion to residential of the floors above the Tesco Express store in Cambrian Road.

Sports Direct is the UK’s largest sporting retailer, and operates more than 500 stores worldwide.

The company owns a large number of sporting brands, and other retailers owned by the company include USC and Lillywhites.