The £55 million redevelopment of Gloucester's derelict Bakers Quay site is starting to take shape.

The 4.13 acre site next to Gloucester Docks has undergone major ground works ready for the construction of new residential apartments, a 104-bedroom Premier Inn Hotel, Brewers Fayre restaurant and Costa Coffee.

The land near the Gloucester and Sharpness Canal -a key part of the regeneration of central Gloucester-is being developed by Rokeby Merchant Developments with Gloucester-based Barnwood Construction as the main contractor.

Adrian Goodall, director of Rokeby Merchant Developments, said: "At the moment we are anticipating completion of the initial 47 apartments at Provender Mill in July next year.

"Preceding that however we do have four cottages that are going to be complete in October this year. We are keen to keep them because they are the last of the dockyard worker cottages. The original proposals were to demolish them but we thought it would make the site more interesting by refurbishing them and making them available as three bedroom houses for families."

The next focus will be the 73 apartments at the Malthouse Extension building which dates back to 1901.

"Our real emphasis is trying to preserve as many of the historic features and offer people the traditional Gloucester Docks apartments of iron columns, the preserved wooden beams, the brickwork and views of the canal with a few extras that we are introducing," said Mr Goodall.

"We have a large atrium and balconies to some of the apartments with open views to the canal."

A marketing launch for the new apartments will take place at the Sula lightship at Gloucester Docks on Thursday May 25 from 2pm with all interested welcome. Full details are available at www.bakersquay.com

Simon Carey, managing director of the Bakers Quay contractors, Barnwood Construction, said: "We are delighted to have commenced this project in the centre of Gloucester Docks in our home city.

"We are very proud to be part of Gloucester's regeneration. We have carried out many projects in the city in the past but this site has been an eyesore in Gloucester for a long time and we are pleased to be delivering the first phase next year."

The original Provender Mill building was sadly destroyed by fire but the Engine Shed structure has been retained and will be converted into the Brewers Fayre restaurant.

"It is in a very poor state and there are extensive repairs required which will be painstaking and complicated to carry out," explained Mr Carey. At the peak of the work Barnwood will employ over 100 people at Bakers Quay including sub-contractors and suppliers, mainly from the Gloucester area.

Mr Carey said: "We are employing a lot of Gloucester based tradesmen, in particular bricklayers, who will be involved in rebuilding the building and restoring it to encompass some of the historical features but also to perform as a modern building for Brewers Fayre."

Councillor Paul James, leader of Gloucester City Council, said: "It is great to see the work under way at Bakers Quay. It is a long awaited development and is a site that has been derelict for 20 years or so and stands in stark contrast to the development that has taken place over the last decade at Gloucester Quays.

"So this is the final piece of the jigsaw. Over the next year or so we are going to see this site transformed with phase one of the development, the new Provender Mill apartment building, a new Premier Inn Hotel, Brewers Fayre restaurant and a drive-thru Costa Coffee before we move onto phase two with more residential development.

"This part of the city is going to see some really big changes over the coming months and years."

Pictured: left to right, Adrian Goodall, director of Rokeby Merchant Developments, Cllr Paul James, Gloucester City Council leader, Michael Chicken, chairman of Rokeby and Simon Carey, MD of contractors Barnwood Construction