A BOUTIQUE investment firm has acquired a newly opened York convenience store developed within a former chapel.

The redevelopment of the former Groves Chapel, in Clarence Street, was completed by York firm S Harrison, with construction work was carried out by Broadley.

S Harrison this week announced it has now sold the freehold of the building to investment company Wulstan Capital.

The mixed-use development has created both new homes and a convenience store within the disused building, which sits at the junction of Union Terrace and Wigginton Road.

The retail part of the project, which was originally going to be operated by Sainsbury’s, has now been leased to Co-operative Food, which opened on March 22 following a £450,000 investment by the retailer, creating 16 jobs.

S Harrison had previously completed a deal with IP Global, an international property investment firm with a portfolio that spans the world’s real estate markets, for the residential element of the scheme.

David Clancy, development director at S Harrison, says: “This building was previously considered to be at risk by City of York Council and it required major investment to create a suitable use for the future.

“We have delivered this by creating a mixed-use scheme consisting of quality homes, alongside the carefully refurbished Chapel building.

“For two highly respected property investment companies to have recognised the overall quality of the development, as well as its potential to generate long-term returns, is a major coup and speaks volumes about York’s residential and retail markets.

“It’s also great news that the Co-Op has leased the retail element, and we are confident it will attract plenty of footfall in this popular and busy part of York.”

Wulstan Capital is a London based boutique investment company that focuses on fund management and investment within the UK commercial real estate sector.

Plans to convert the chapel into a small Sainsbury’s were opposed by hundreds of people who signed a petition against the scheme in 2014. But despite objections, the project was approved and work on the Grade II-listed building began in January 2017.