Newcastle-based Merchant Place Developments has submitted a planning application to redevelop one of the city’s landmark buildings into a leisure scheme.
Merchant Place plans to transform the 150,000 sq ft grade II-listed former Co-operative department store building on Newgate Street into a 231-bedroom hotel, restaurants, shops and a gym.
It is understood that Merchant Place is in advanced discussions with Travelodge to operate the hotel element of the development. The firm claims that around 90% of the space is either prelet or close to being prelet.
Merchant Place bought the art deco building, which was built in 1932, for £12m earlier this year from The Co-operative Group. The scheme will also include the redevelopment of an adjoining building on St Andrew’s Street.
Subject to planning, the developer aims to be on-site this autumn. Retail and restaurant space is due to be completed by autumn 2012 and the hotel will open in summer 2013.
William Grafton, project director at Merchant Place Developments, said: “This will complete the redevelopment of this important part of the city centre, bringing life back to a building that, in part, has stood empty for a number of years. It is the final part of the jigsaw for Newgate Street, bringing more restaurant and retail space to strengthen the existing pitch and much needed city centre hotel space.”
daniel.cunningham@estatesgazette.com
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