Poundstretcher have agreed a 10-year lease for the former Poundland store on Southgate Street.

The £55,000 per-year lease starts this month for the 675 square metre store and ancillary accommodation on the first and second floors of the number six Southgate Street.

While the lease is due to start imminently, the building may have a new owner as it is going under the hammer in two weeks' time.

Units 4 and 6 on Southgate Street will be auctioned by Acuitus on May 23 under a guide price of £250,000 for the Leasehold of the property.

Unity 4 was previously occupied by Patisserie Valerie, who ceased trading earlier this year.

The notes for the lot at auction say that the current tenant Stonebeach Ltd are in administration and has not paid the most recent quarter's rent.

It also says there has been "occupier interest in the unit" to take on the 70 sq m ground floor and 48 sq m first-floor retail space and 37.1 sq m ancillary second floor space.

The units are leased from Gloucester City Council on a 99year lease on a peppercorn rent. The current lease started on June 24, 1937, so has 18 years to run.

Prior to becoming a Poundstretcher, the site has been a Poundland and previously a 99p store.