A £30m luxury leisure development scheme which has been more than a decade in the making has finally been given the green light by Newcastle City Council.

The Malhotra Group is looking to create a 100,000sq ft flagship complex by refurbishing a number of Grade II-listed buildings in Newcastle city centre, located in and around Grey Street, Mosley Street and the Cloth Market.

The scheme – which has also won the backing of Historic England and Newcastle Conservation Area Panel – will be home to a health club, a luxury 120-bedroom hotel, retail outlets, a roof top bar with an outdoor swimming pool, a nightclub and restaurants.

While there are no further details of the exact size of the health club – and the operator's identity hasn't been confirmed – according to Meenu Malhotra, chair of the Malhotra Group, interest has already been expressed from a “number of international brands” about taking up tenancies at the development.

“It is 10 years since we started to work on this development and it is fantastic that we can now finally get underway," he said.

“It means we can preserve some of the city centre’s most historically important buildings that otherwise might have been lost forever and breathe new life back into them.

“This is part of our on-going commitment to continue to invest in the North East and we believe this will be of national and international importance and will become an integral part of attracting people to Newcastle.

“We are very proud to be able to create something which will be a legacy for the city.”

The development will be designed by Space Architects.

David Coundon, director at Space Architects, said: “It is thoroughly rewarding to be given the opportunity to restore these historic buildings back to their original beauty while also remodelling them in order to create a sustainable leisure destination fit for the 21st century.

“This development will reinvigorate a whole section of the city and create a place that can nurture, entertain and inspire people; a place that can champion cultural life and a place that meets the client’s and city's ambitions for regeneration and growth."

In total, the project will encompass nine existing neoclassical buildings – seven of which are Grade II listed.