Consensus Capital Property, a private equity-backed property fund, and the Premier Inn hotel chain have agreed a £17m deal to transform the building.
The old offices, formerly used by HM Revenue & Customs (HMRC), will be turned into a 127-bedroom hotel with a 30 year lease.
Consensus Capital Property was formed two years ago. Chief executive Andrew Montague said: “This deal and redevelopment represents a significant milestone for us as a company, and we hope it will be the first of many projects with Premier Inn. This is our biggest deal to date and brings us out of our traditional heartland of social housing and into larger commercial developments with blue chip companies. We’re looking to do more structured funding deals of this stature in the near future.”