A shopping centre in the heart of Brighton has been sold for £10 million in one of the city's biggest property deals.

Regent Arcade, a covered complex of 20 shops between East Street and Market Street, has been bought by Brighton-based Baron Homes from loyalty card giant GE Capital of London.

The return of the mall to the hands of a local firm, run by husband-and-wife team Richard and Nazila Blencowe, is being described as a victory for the business community.

The Sixties-built arcade once prided itself on its appearance but the veneer of refinement has faded in recent years through a combination of neglect and competition from bigger shopping centres such as Churchill Square.

Baron hopes a package of investment and improvements will trigger a revival.

Solicitor David Barling, of Dean Wilson Laing, who acted for the purchasers, said: "This is one of the biggest property deals for years in Brighton."

Baron, based in Prince's Place, is one of the biggest landlords in the city with a portfolio of homes, offices and shops.

Until now its most prominent development has been Princes House off North Street, an art deco building tastefully renovated to create flats above a restaurant.

Although a successful firm, it is relatively small compared with the London giants who would traditionally be interested in a purchase of this scale.

Regent Arcade opened in 1961 and now has 20 shops occupying 17,500sqft, as well as 28,000sqft of offices and 20 underground car parking spaces.

The arcade has always attracted a celebrity clientele. Oasis singer Liam Gallagher and girlfriend Nicole Appleton recently stopped off to pick up some clothes on a visit to the city.

The £10 million deal is complicated in that not all of the shops are included in the purchase.

Those that are include The Italian Suit Company, the Gog Shop, Crabtree and Evelyn and half of Starbucks.

English's fish restaurant, Fat Leo's and Audrey's chocolate shop fall outside the boundary and will be retained by their present owners.

Baron directors Mr and Mrs Blencowe were thrilled to have concluded the deal.

Mr Blencowe said: "We have struck a blow for local businesses in concluding this deal."

Local professionals were used as far as possible, including NatWest Bank in Brighton, Dean Wilson Laing, agents Carr and Priddle, and Stiles Harold Williams, who provided advice.

Another local company, architects the RH Partnership, will be asked to draw up a masterplan for renovations.

Although the arcade is in good condition it needs some refurbishment and Mr Blencowe would like to create an attractive entrance feature at the Market Street end.

He said: "We will be sympathetic towards the character of Regent Arcade.

"What we do will be good for Brighton and good for Baron Homes."

He said the arcade was part of an attractive area of Brighton, made more popular since the closure of Hannington's department store.

Metropolitan Estate and Property Corporation (MEPC) bought the site and drew up plans for a 15,000sqft, three-storey complex comprising 13 shops in 1960.

GE Capital took control as a by-product of its acquisition of MEPC five years ago.

The firm has carried out some renovation over the past 12 months, including changes to the entrance in East Street.

When putting the site up for sale, chartered surveyors Drivers Jonas revealed the arcade's annual net income was £769,950. The site was eventually sold for £10.25 million.

David Mayes, of Drivers Jonas, said: "Certain works of refurbishment were carried out to open up the arcade and improve its appeal to shoppers and tenants.

"Having done that work and owned the arcade for five years, it was the right time to sell up.

"We experienced tremendously strong bidding from both private investors and London-based institutions, reflecting the attractiveness of Brighton as a location."

Extra investment and improvements cannot come soon enough, according to traders who have seen the arcade lose some of its exalted status in recent years.

Brian Page, of Colin Page Antiquarian Books, which has been in the arcade for nine years, said: "The number of people coming in to the arcade has certainly gone down.

"The arcade used to be the best in Brighton but it has had better days, especially since the closed area at Churchill Square came on the scene.

"Luckily we now do most of our trade on the internet."

Much of the arcade's success was based on it being a stronghold of high-class fashion retailers, attracting many clothes shoppers from London.

That pulling power has not entirely been lost.

Celebrity customers have included pop star Will Young and footballers Bobby Zamora and Matt Le Tissier.

But a general sense of neglect has prompted some traders to move on.

Coco outfitters was based in the arcade for 15 years until it moved to Brighton Square last February.

Shop assistant Valerie Franks said: "Things had been getting very quiet, while the rents went up quite steeply.

"Everything seemed to be deteriorating. The lights wouldn't work, the fountain hadn't worked for years and the place was looking quite dark and derelict.

"We had shoplifters, kids throwing things at the windows and it all got pretty miserable. We moved but it does seem over the last year they've improved the look of it."

Mr Blencowe agreed the arcade had been "left to one side" for too long.

He said: "Now we have to look at how we can maximise its potential for the future."