THE Kingsway centre has been sold for over £27m to start a shopping revolution in Newport.

Work could soon begin on turning the dated centre into a £110m shopping mall anchored with a Debenhams store.

The planned mall is a cornerstone of Newport's vision to create a city for the future by 2020.

Graham Moore, chief executive of Newport Unlimited, said he was thrilled that banking giant UBS Global Asset Management was due to become the new owner.

He said: "We're delighted such a significant and substantial company will own the centre. They run several shopping centres around the UK. "They have long-term interests in making sure it is upgraded. It puts a stamp of credibility on Newport.

"The buyer has exchanged contracts and is to complete the purchase within the next few weeks."

Seller Rhys (Newport) got planning permission to double the size of the 30-year-old centre and neighbouring John Frost Square to create a modern mall by 2006/07.

It put the centre on the market in July 2003 with an asking price of around £25m. By mid September the bids had been whittled down to talks with the preferred buyer, UBS Global Assets.

The Swiss finance giant, which is understood to have agreed a price tag of just over £27m, has the option of using the existing plans, but could amend them or create its own.

Chris Freegard, managing director of Newport council, freeholders of the land, and a director of Newport Unlim-ited, said: "Our friends at Debenhams remain committed to being in Newport. We've made sure they've been kept up to date with developments.

"This can only be good news for Newport shoppers. The existing Kingsway centre is looking rather tired."

The plans aim to double the size of the Kingsway centre to 450,000 sq ft, and to build a department store, a hotel, apartments, and a 1,370-space car park.

The Welsh Development Agency and Newport council has pledged to give the scheme financial backing.