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Tesco's development arm Spenhill has submitted a planning application for the regeneration of Gateshead's Trinity Square, which include the construction of new homes for students in the area.
Plans for the project also include a new town square, shops, a student village, a hotel, office space, town centre parking and of course, a Tesco superstore.
Doug Wilson, corporate affairs manager for Spenhill, commented: "We have been working closely with the Council to deliver the best possible town centre for the people of Gateshead."
Spenhill and Gateshead Council last month have already held talks about potential new developments in the area.
Tesco New Homes
Tesco has been constructing new and affordable homes, in partnership with various local housing associations, since 1997.
The supermarket chain is currently eyeing up plots for potential mixed-use developments, including new build homes, in a number of areas, including Dartford, Kent, Streatham, and Woolwich, among other parts of London.
A Tesco spokesman said: "We [Tesco] has been developing new and affordable homes for thirteen years. We have long invested in areas in need of investment."