MOORSIDE, the new Norwich Union Life building at Monks Cross, York, has been sold for £16.5 million - the biggest commercial property deal in York this century.

Norwich Union Life will remain tenants of the 68,000 sq ft three-storey building, reaffirming its commitment to the city by signing a 25-year lease with new owners Prudential annuities.

The deal was brokered by The Helmsley Group, part of the Monks Cross Partnership, which, with the help of S Harrison construction of Malton, built Moorside for £12 million in time for the Norwich Union Life occupation in the summer of 2003.

The profit of £4.5 million will be distributed between members of the partnership, which includes The Helmsley Group, York property developers Hugh Ball and Peter Smith, and other landowners.

The only commercial property sale to compare was eight years ago when a development consortium sold the massive MAFF building (now Defra) at Foss Bank for £25 million. Moorside, near York's outer ring road, was marketed by Leeds agents Knight Frank to "a range of potential buyers" for a minimum of £15.6 million and the Prudential's was the best offer.

Richard Peak, director of The Helmsley Group, said: "The premises were purpose-built to a high standard for Norwich Union Life and their 750 employees, who moved into the three-storey building in summer 2003.

"The Prudential have recognised the value of investing in such a property with a committed tenant, which will benefit their annuities funds."

Henrie Westlake, partner at Knight Frank, who acted jointly on behalf of the Monks Cross Partnership and Norwich Union Life, said: "This is one of the largest deals in the region this year. It is a win-win situation for all parties involved."

More big commercial property deals are likely to be struck by the Monks Cross Partnership in future.

The organisation recently achieved planning permission to continue to develop the 40-acre site to the north of the Monks Cross Shopping Park.

It envisages a £60 million business park there, generating 5,000 jobs. Already the partnership has developed speculative office developments at Monks Cross, including Alpha - seven units for sale or let - and Omega - a terrace of six units ideal for small to medium-sized businesses.

Updated: 11:47 Thursday, October 07, 2004