Contractors have moved into an historic mill to convert it into dozens of flats as part of a scheme to turn Little Germany, Bradford, into a thriving urban village.

The £2.4 million redevelopment of Treadwell's Mill, pictured, will mean more than 100 people will be living in former German merchants' quarter.

Developers have already moved into Silens Works and Behrens Warehouse to convert them into flats and apartments.

The properties have been snapped up by people wanting to move into the area, which was a hub of activity when Bradford was the wool capital of the world in the 1800s.

The famous village within a city is a conservation area and its imposing stone buildings are listed. It was designated as an urban village three years ago with the aim of drawing in residents, leisure and business.

Government regeneration agency Yorkshire Forward has given a £446,000 grant towards the scheme.

Treadwell's Mill takes its name from maverick art dealer Nicholas Treadwell who closed his gallery in Kent in 1989 to transform the mill, which was built in 1847, into a major centre featuring controversial modern art.

The four-floor building also contained a museum of modern art dating back 25 years, 14 studios for young art graduates, a dance floor, theatre and cinema.

It contained the world's biggest collection of bizarre and challenging art form Superhumanism.

The centre attracted 25,000 visitors in 18 months but by 1991 Mr Treadwell put the building on the market because of mounting debts.

A subsequent plan by a group of entrepeneurs to redevelop it failed and the building has been empty for the past five years.

It was bought by Leeds-based Landmark Developments about two years ago and the 33 flats are expected to be completed in six month's time. The one and two bedroom apartments will have prices ranging from £55,000 to £90,000.

The company has already turned converted offices in Ivegate House and Broadway in the heart of the city centre into flats, most of which have been sold.

Landmark is also developing office, hotel, business and leisure schemes across the rest of Bradford.

Director Nick Elliott said: "The success of Ivegate House and Broadway has demonstrated the need for city living in Bradford.

"Treadwell's Mills is ideal for people who currently live on the outskirts but work in the city centre.

"Leeds has reaped the benefits of a thriving city residential market and, as a growing city, Bradford is the ideal location to further develop the city living phenomenon in Yorkshire."

Nigel Rice, project director of the Little Germany Urban Village Company - which is spearheading its regeneration - said: "It is excellent news and keeps up the momentum which is building up in Little Germany. Other residential developments will also be coming along."