Supermarket giant Asda plans to sell part of the land around its planned new store in Telford to be developed for housing, it was revealed today.

A planning application has been submitted by Asda for approval to develop a massive new superstore, a petrol station and a new 500-space car park on the site of the Telford & Wrekin Council civic offices.

A multi-million pound deal between the supermarket chain and Telford & Wrekin Council will go through for the land if planning permission is granted on Wednesday.

But Asda chiefs have also applied for outline planning permission to build 79 homes on open land near Malinslee roundabout. The scheme proposes 16 three-bedroom homes, four four-bed houses and 59 one or two bed apartments.

It is believed Asda would look to sell the land to a developer to build the homes if planning permission was granted to claw some cash back on its outlay on the civic offices site.

A report recommends approval and states: “The development will provide a link between the town centre and existing residential areas and encourage use of the town centre day and night.

“The proposed dwellings are of a size and tenure to meet local need and are to include a minimum 25 per cent affordable units.”

The plans for the supermarket and new homes are right on the doorstep of exciting £250 million blueprints for Southwater, a key gateway into the town.

The plans will see a complex of shops, hotels, homes and leisure facilities developed, which it is believed will bring £100 million into the local economy.

The massive Southwater Square revamp will see a landmark area around the ice rink and town park created as well as a major extension to the town’s conference centre, which it is hoped will attract an extra 200,000 visitors a year. Telford & Wrekin Council and Southwater Event Group are behind the plans.

It is expected that, subject to approval, work will start in the autumn of next year.

Chris Marlow, spokesman for Asda, said the store would purchase the land once planning was granted but added any plans for homes would be carried out by the council.

He said: “As part of the new store proposal Asda applied for new homes on the adjoining site. That was to ensure a coordinated approach to the development overall if planning consent is granted for the new store and new homes.”

By Wayne Beese