A GRADE II listed city centre property lying just 120 metres from York Minster has been acquired by develop S Harrison as part of a £5 million scheme to create 14 new apartments.

Hunter House, in Goodramgate, which has been purchased by the York company for an undisclosed sum, will retain 9,000sq ft of retail space at ground floor and basement level under the plans, while the apartments will be created on the upper floors.

The scheme, which was revealed on completion of the deal last week, is subject to planning approval.

S Harrison director David Clancy, said: "This is a rare opportunity to acquire and return to productive use such a quality property in such a prestigious location at the heart of the city.

"With some of the retail space and much of the upper floor office space currently underutilised, there is a great potential to revitalise the retail element and develop the rest of the space in line with the city’s ‘living above the shop’ aspirations.

"With spectacular Minster views we expect no shortage of interest in the planned one and two-bed apartments, if councillors approve our proposals."

The acquisition is one of a number of pipeline projects across the region for S Harrison which holds significant cash reserves for new investment opportunities.

The developer won national acclaim for its conversion of York’s Grade II* listed former railway station to create a new £35 million headquarters for City of York Council.

Earlier this year Harrison acquired its first development site in Scotland where it plans to deliver student accommodation on Leith Walk in Edinburgh’s New Town.

This summer also saw Harrison complete work on a new Premier Inn as part of a £14 million mixed use scheme in Lichfield.

Harrison has already drawn up initial plans for the Hunter House site, and hopes to submit a planning application later this year, with work set to start immediately on the residential conversions if the application is approved.

City of York Council leader James Alexander, said: "This is great news for the city and an indication that York is very much ‘open for business’.

"I’m delighted that an award winning developer with strong York connections is committed to retaining retail and leisure provision in the centre of York and creating new homes in currently unused office space.

"It’s good to see significant further investment in York city centre following on from recent developments at Bonding Warehouse, the White Swan Hotel and St Leonards.”

Hudson Moody in York is advising Harrison on the residential element of the £5 million scheme.