A regeneration project for one of the largest brownfield redevelopment sites in South Wales is being planned by UK-based developers Countrywide Homes and JJ Gallagher Ltd.

Their joint venture 'GC Newport Ltd' is preparing proposals for an exciting residential-led mixed use redevelopment of the former 39-acre Whitehead strip steel site in Mendalgief Road, Newport, which it has acquired from international steel company Corus plc.

The site, which has recently been vacated by Corus, currently provides more than 360,000 sq ft of storage and distribution space, which is being marketed by joint agents GVA Grimley and EJ Hales while the developer prepares comprehensive new proposals.

Louise Grady, head of Countrywide Homes, South Wales division, said: "This site offers the opportunity for a first-class mixed-use scheme that will help meet considerable demand for space in Newport. "We are already working closely with our professional advisers to develop plans for a regeneration scheme that will create much-needed new residential and community facilities for Wales' youngest city. "Newport's Unitary Development Plan outlines the requirement for 6,000 new homes and we envisage this site making a very significant contribution to this total. "One of our priorities will be to work closely with the planning authorities and the local community to ensure a successful redevelopment that also meets the Welsh Assembly's sustainable development objectives."

Owen Young, associate at GVA Grimley's Cardiff office, said the Whitehead site would be available for short and medium term lettings while a new scheme went through the planning process. "There is some 360,000 sq ft available of secure storage capacity which can also be readily divided to create self-contained areas," he said.

Simon Watson-James, of EJ Hales, said: "The site provides an ideal opportunity for companies who need short to medium storage, at competitive rates, in an accessible location just 2 miles from the M4 and close to Newport docks."

Corus announced in December, 2002, its intention to shift product from the Whitehead works to the Llanwern steelworks five miles away.

Countrywide Homes has almost £400m invested in more than 70 sites nationwide. It launched its new Cardiff-based Wales division evening at a high-profile ceremony for more than 150 property professionals at the city's Millennium Stadium.

Gallagher Estates is one of the largest developers promoting and developing residential and mixed use schemes through the planning system in Britain.