One of Newcastle’s highest buildings will be transformed into city centre apartments following a £20m funding deal.

At 200ft high, Cale Cross House is the 10th tallest building in Newcastle and it provided office space for a number of businesses from the 1970s until it was snapped up by developers in 2021.

Now Manchester-based Beech Holdings will put plans into action to turn the block into housing, with 241 apartments spread across the 18-storey building. The firm first revealed redevelopment plans for the tower two years ago, with the facelift set to include stripping Cale Cross House of its aluminium cladding, which does not comply with post-Grenfell fire safety rules for residential homes.

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Bank of London and The Middle East (BLME) has provided the £20m development facility to finance the residential project, being carried out under the developer’s brand City Co-Living. The scheme will comprise a mix of studios and one bedroom units, suitable for graduates and young professionals, as well as amenities including a gym, private dining rooms, co-work space, cinema rooms and gaming rooms.

The company highlighted how office to residential conversions have become increasingly popular in recent years, with changes to permitted development rights (PDR) regulation in 2020 making it a much more viable option. The deal marks BLME’s fourth transaction with Beech, following the successful completion of three projects in Manchester.

Stephen Beech, CEO at Beech Holdings said: “As a developer committed to ‘levelling up’ the regions, especially those across the North, we are incredibly excited to be realising the potential of the former Cale Cross House building, and injecting some much needed, high-quality properties into Newcastle’s property market under our exclusive co-living brand ‘City Co-Living’. Already a landmark in the vibrant Quayside neighbourhood, our aim is to transform it into a modern icon at the heart of a city benefiting from significant investment – and we welcome the opportunity to work with BLME, a bank which clearly recognises the huge potential in the Ƶ’s regional property market.”

How Cale Cross House will look when it's finished
How Cale Cross House will look when it's finished

Anna Barratt, director, real estate finance at BLME, said: “The conversion of office blocks into residential accommodation is something we expect to see more of, as changes to working habits prompt organisations to re-evaluate their office requirement. It’s great to see so many of these previously redundant buildings being repurposed.

“We also anticipate growing interest in regional assets in 2023, and this development is a perfect example of the types of opportunities available to investors willing to look beyond London. Cale Cross House is in a prime location, just next to the iconic Tyne Bridge and within walking distance of Newcastle’s vibrant Quayside area. It will provide residents with exceptional views across the city. ”

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