HEREFORD'S Three Elms Trading Estate could be developed to make room for many of the companies that will have to move as part of the Edgar Street Grid (ESG) regeneration project.

The long-established north Hereford estate was specifically acquired a year ago by the regional development agency Advantage West Midlands (AWM), because of the opportunity to offer alternative premises to those firms moving out of the ESG area.

Businesses will be relocated when work starts in the next few years on the retail and leisure quarter on the old livestock market and 1,000 homes are built in the Blackfriars Urban Village.

Announcing plans to build 24,000sq ft of new business and commercial units at the Three Elms site, Nigel Hudson, co-ordinating the project for AWM, said: "A number of businesses are likely to be displaced as a result of the ESG regeneration project and, together with Herefordshire Council and ESG, plans are being prepared to ensure the transition to new premises will be as smooth and efficient as possible.

"Buying the Three Elms estate a year ago is part of this strategy and the emerging plans for development underpin our commitment to those businesses in the ESG area affected by the plans to ensure Hereford's long-term economic future."

Businesses affected by the ESG scheme are in the livestock market, the northern end of Widemarsh Street and on the Station Approach trading estate, now owned by Herefordshire Council.

A timescale for work to start, and confirmation of every business involved, cannot be given until the masterplan for the £900m regeneration project is finally approved.

It is estimated that about 40 firms could be involved in the first phase of development.

Councillor Adrian Blackshaw, cabinet member for economic development and community services, said: "For many of the companies, the chance to move into new, well-serviced units on an established and accessible trading estate will be an opportunity to expand and develop their business.

"We are already working with some businesses to secure space for them. But we do recognise that Three Elms will not suit everyone and we are providing advice and support, including a register of available properties, to help these businesses find alternative premises, matching their specific needs.

"Both the council and AWM are aware of the importance of retaining and growing existing businesses and the need to create further employment for future generations.

"There are also several privately owned prime sites in the city with the potential for business and commercial redevelopment and we will be liaising with the owners to establish their plans and how these might fit in with individual company needs."

l Meanwhile, one of Herefordshire's longest-serving headteachers has joined the ESG board. Andrew Marson retired in August this year after 21 years as head of the Bishop of Hereford's Bluecoat School.

The board hopes his experience can engage young people in the grid plan.