GLASGOW City Council's pension fund has offered a lifeline to a former shipyard.

The Gallagher retail park on the former Port Glasgow shipyard site is in line for the £30million investment.

Strathclyde Pension Fund bought the shopping park and neighbouring development land for an undisclosed sum.

However, it is understood the deal cost around £16m with a further £14m expected to be invested in creating new retail space.

The purchase, which is the first for the newly-established Clydebuilt Fund, includes the existing B&Q and Costa Coffee buildings and adjacent land which has planning permission for a further 200,000sq ft of retail warehouse space.

Detailed discussions are under way with a number of retailers who are interested in moving in. When completed, the whole project would result in an investment in excess of £30m and a "significant" number of new jobs.

The investment is seen as the final piece of a 25-year regeneration plan for Inverclyde which has resulted in the remodelling of the town centre, the realignment of the A8 and hundreds of new homes.

Paul Rooney, chairman of Strathclyde Pension Fund and Glasgow City Council city treasurer, said: "This is exactly the kind of deal the Clydebuilt Fund was created for.

"For our members, it is a solid investment underpinned by a successful existing operation, including long-term leases to well known retail names.

"However, Clydebuilt is not only about finding opportunities for the fund but also for communities.

"We are confident we can add value to our investment and to Port Glasgow and Inverclyde through a better retail offering and, crucially, employment.

"I am positive about seeing more of their money being invested in the communities in which they work and live, supporting native businesses and jobs."