Historic Pendower Hall set to be sold to new owners following appointment of receivers

A historic hall in Newcastle which has been the centre of a regeneration plan is poised to be sold to new owners.

Plans to breathe new life into the Grade II listed Pendower Hall in Newcastle’s west end were first launched nine years ago, when the building was marketed for sale by Newcastle City Council amid moves to raise funds by selling off property assets. The hall was snapped up by current Tier One Capital director Ian McElroy and former director Stephen Black in an £816,000 deal, triggering plans to convert the property into a wedding and conference centre with office space.

Mr McElroy and Mr Black have both since resigned as directors of Pendower Hall Ltd, though the company continues to be owned by Mr Black and Jill Black. Receivers from FRP Advisory were appointed to the property in the week before Christmas, and say they are now in talks with interested parties who are keen to develop the site.

It is also understood the potential new owners are looking to continue with development of the property, which has planning permission in place for conversion to a conference centre.

Andy Haslam, partner at FRP Advisory said: “I can confirm that Antonya Allison and myself of FRP Advisory Trading Limited were appointed as joint receivers of the property at Pendower Hall immediately prior to Christmas.

“Our appointment is in respect of the property only and does not effect the previous owner, Pendower Hall Limited. Following appointment, the receivers have engaged with sales agents and solicitors and are hoping to progress the current substantial interest in the property to an early sale. The party we are currently in discussions with are unconnected with the previous owners.”

An imminent deal to sell the property to new owners brings hope that plans to transform the site can finally progress after stalling for a number of years.

Initial works started several years ago at the Benwell site following a protracted planning process. It took two years to secure planning permission, in the summer of 2017, after archaeological excavation of the site was ordered because of its location on the route of Hadrian’s Wall. Work started that same year, with New Forest Developments appointed as main contractor.

A trio of businesses including Cascade Cash Management, Dinosauria, and Invenium, were originally signed up to have first choice to become business tenants in the office space, and the SME Centre of Excellence business hub, run by Ammar Mirza, had also agreed to be the anchor tenant. Also planned for the development was a Great Hall, which could hold up to 450 people at weddings, conferences and other events.

It was originally hoped that all the main works would be completed in 2018 but no works have been carried out at the site for a number of years.

Following the recent appointment of receivers, a spokesperson for Tier One Capital Ltd said: “Tier One Capital Ltd acts as facility agent and security trustee on behalf of a syndicate of lenders who have provided debt finance for the development of Pendower Hall. This facility was due for repayment in March 2023 and following instruction from a majority of lenders, Tier One Capital Ltd has recently made arrangements to appoint an LPA Receiver as part of its recovery process.”

Pendower Hall was originally built for Quaker banker J W Pearce in 1867 and over the years has been used by the council as a school and an education training centre, but it had lain empty for more than a decade before being put up sale in 2015.