Discussions with the City of York Council have been ongoing for some time and Palace Capital is hoping to receive approval of a planning application in the autumn.
Hudson House formed part of the Sequel Portfolio acquired from Quintain Estates & Development plc in October 2013. The property was built in 1965 and comprises approximately 103,000 sq ft of office space, of which about 55,000 sq ft is let on short term tenancies, and the remainder has been empty for some time.
Neil Sinclair, chief executive of Palace Capital, said: “This is an exciting opportunity both for the City of York and Palace Capital. It demonstrates the active management that is ongoing right across the company’s portfolio.
“York is a fast growing city with a strong residential market and is increasingly attractive to major office occupiers. For example, Hiscox, the large insurance company, is due to complete its new 50,000 sq ft office building shortly.”