After a long-awaited start, Gentoo's sites at Lagny Street and New Row got off the ground at the beginning of the year and are well under way thanks to a £5.9million investment from the Homes and Communities Agency.

Talks are ongoing to find retailers for the 27,000sq ft of retail space beneath the homes on Lagny Street.

But, following rumours that Marks and Spencer is looking at the site, a spokeswoman for the store told the Gazette that the company was not looking to move to the town.

Stewart Allen, managing director of Gentoo Ventures, said: "As can be seen work is now well under way on site in Alnwick and is progressing incredibly quickly!

"The first apartment has already been reserved off plan and we are in advanced discussions with a major high street retailer for 17,000 sq feet of the commercial floor space. Other smaller retail units are still available from 1,400 sq feet."

The 93 properties will be a mix of affordable rent and intermediate rent with 23 offered for sale at Gentoo's Clayport and New Row developments with car parking provision.

The erection of the shell work has commenced at the Lagny Street site and will soon be followed by the installation of floors and staircases. This work will continue until the end of March. Masonry works are planned to start this month for overall completion in February 2011.

Temporary fencing and underground steel sheets are being installed at the New Row development in preparation to receive piling rigs, followed by the construction of the foundations and the necessary retaining works. It is planned that brickwork and block work will commence in May this year.

Gentoo, in conjunction with various interested parties, hold a residents and traders meeting on a monthly basis, the object of which is to keep everyone informed of the progress of the projects.