Bold plans for an international film studio and housing complex worth £250m have taken a step forward after council bosses signed off a huge loan.

The Newtown Works project in Ashford is set to transform the derelict railway facility near the Designer Outlet into 7,440 sq m of filming and production space.

The Ashford International Development Company (AIDC) is in talks with “a leading global studio operator" according to council reports, with Netflix, Amazon and HBO all linked to the scheme.

Bosses began preliminary works in March last year after gaining planning permission in 2020, with the studios expected to open in 2025.

AIDC is 65% owned by Ashford Borough Council (ABC), with the other 35% owned by housing giants Quinn Estates after a multi-million pound purchase last year.

Last night, ABC’s cabinet voted to approve a £50m low-interest loan to AIDC for the scheme.

According to council documents the company will pay interest “below commercial rates”, but the local authority expects to make "in the region of £400,000" on repayments.

Outgoing council leader of 10 years Cllr Gerry Clarkson (Con) told the cabinet meeting yesterday: “It is a gamechanger for Ashford.

“The Newtown works have been there for decades and decades laying there derelict.

“There's a huge unfilled demand for studio space, it is colossal.

“And here this is not just a fantastic opportunity for Ashford, this is for Kent county and UK PLC will benefit from this.”

He also told cabinet members that a cafe slated to occupy one of the commercial units at the site will likely be named “The Coffee Pot” in reference to the first model of train built at the Newtown Works in 1850.

Cabinet member for economic development Cllr Nathan Iliffe (Con) told members: “This project really is one of the most exciting economic projects for the Ashford Borough in not just recent years but recent decades.

“I’d like to think that this project is going to be a massive green light to investors that Ashford is a place to invest within, and lead to further economic development around the area including within our town centre.”

Deputy leader Cllr Paul Bartlett (Con) also detailed to members the money that developers will give to the local area as part of the project.

Developers are set to contribute £310,000 for a town centre play area, £141,000 for an indoor sports area, £186,000 for outdoor sports facilities, £277,000 for the local NHS, and £400,000 for highways improvements on Bad Munstereifel Road.

The local authority is set to pay £30,000 for a redesign of the studios and later planning amendments, and an offer has already been made to buy 202 of the 302 flats planned for the site.

Cabinet member for finance Cllr Neil Shorter (Con) said that with the level of interest in the plans, “the future of this development going forward is virtually guaranteed".

It was announced in October that the Newtown Works project will receive a £14.7m boost from the Levelling Up Fund.

MP Damian Green backed ABC’s bid for the money last June.