Plans for a major £400m mixed-use development scheme designed to transform the centre of Reading has received outline planning consent from the local authority.

Reading Borough Council (RBC) has backed Sackville Developments' proposals for Station Hill, which aims to regenerate a 5-acre (2-hectare) area situated adjacent to the town's railway station. Designed by architects Scott Brownrigg and Chapman Taylor, the plans include a new arts complex, a 5,400sq ft (500sq m) health and fitness centre and a 10-pin bowling alley.

A central public piazza, new public spaces, restaurants, cafés and bars form part of the proposed scheme, which also features retail, residential and office units and will complement RBC and Network Rail's plans for an £825m redevelopment of Reading station. It is hoped that construction work can get underway in 2011, subject to the completion of legal agreements and Reserved Matters applications. The first phase of work is scheduled for completion in 2014.

Sackville Developments, a subsidiary of the Sir John Madejski-owned property company Sackville Properties, expects to providing funding for the four-phase project, which could take up to eight years to complete. Madejski said: "We have been working on our proposals for more than four years and our aim has always been to create a bold, flagship scheme which would meet the council's vision for the area, impress visitors stepping off a train and offer a vibrant living, working and shopping environment for local people. Our vision is now set to become a reality."