ONE of the busiest streets in Ipswich could be transformed by a multi-million pound development on the edge of the town centre.

ONE of the busiest streets in Ipswich could be transformed by a multi-million pound development on the edge of the town centre.

A planning application was today registered with Ipswich Borough Council for St George's House - a new development on St Matthew's street between Berners Street and St George's Street.

It would replace the 1960s building that currently houses, among other businesses, Blockbuster DVD rental and the British Heart Foundation shop.

The huge development includes a hotel, ground-floor shops and “very sheltered” accommodation for frail people, enabling them to live near the heart of the town.

It is being promoted by a group of investors who have formed St George's House LLB to build the development - and the planning application is due to be discussed by borough councillors later this year.

Ipswich council's economic development spokesman Richard Atkins said he had not examined the application in detail, but felt a development on that site would be welcome.

He said: “That building on St Matthew's Street is not particularly attractive and was partially demolished many years ago. That entrance to the town could do with improvement.

“The planning officers and councillors will look very hard at the proposals. Hopefully something exciting will happen there.”

The proposal includes a 125-room budget-style hotel, a medium-sized food store and four smaller shops, and 46 flats of very sheltered accommodation.

There is no indication yet of when work might start if planning permission is granted - although the current state of the economy could delay the project.