Years of neglect have seen Shackleton Hall, a Grade II listed building and the former Colne and District Cooperative Society HQ, has become a town centre eye sore – so much so the building has been placed on English Heritage's "at risk" register.

But under regeneration plans from PEARL 2, the joint venture partnership between Barnfield Investment Properties and Pendle Council, the building will be converted into a modern office space and retail arcade while maintaining its Victorian exterior, in keeping with the town's architecture.

Pendle Council's Colne and District Committee gave the plans their unanimus approval on Thursday, which will see Housing Pendle, the largest provider of social housing in the borough, move in.

Coun. Tony Greaves said the development was a wonderful proposal for Colne and Pendle and would see an end use for the building. "Filling the shops will be a challenge but I have to say this is part of the future of Colne," he said.

Plans are now being drawn up by the council for the future use of Colne Town Hall once Housing Pendle relocates to Shackleton Hall.

The new premises will enable Housing Pendle to provide a one-stop shop, with improved access for customers, in a town centre location.

The innovative plans are focused on minimising future energy uses through substantial structural improvements and low energy appliances and lighting will further reduce energy consumption, along with easily accessible metering allowing all building users to simply monitor the energy use of their area.

Gareth Smith, Barnfield Construction's joint venture manager, said: "This is a really positive statement in such difficult times. Our relationship with Housing Pendle is going from strength to strength and this really highlights the determination by all in Pendle to deliver real regeneration across the borough."

Ian Clark, Executive Director for Housing Pendle, said: "The move is funded from existing budgets, so there's no cut in front-line services. In fact, relocating to Shackleton Hall provides us with an improved reception area, interview rooms and a shop window, making it easier for our customers to access services 24/7."