WORK is starting to transform one of Grainger Town's run-down buildings into residential apartments for visitors to Newcastle to live in during extended visits to the City.

Chu Yuk Fun Enterprises, the owners of Murton House on Grainger Street, is redeveloping the building to create apartments for short-term rental.

The scheme will provide residential accommodation for up to 25 people in six different apartments, and is being targeted specifically at the growing number of business visitors to the city.

Murton House comprises of Grade II listed buildings and was last used as a department store in 1980.

The £1.6m scheme is being supported by an investment from One NorthEast's Single Regeneration Budget, via the Grainger Town Project.

The owners, with the help of a Conservation Area Partnership Grant, are also upgrading the ground floor of the building, which will be used as a retail site and the first floor, for restaurant use.

Chu Yuk Fun Enterprises Ltd has successfully refurbished a number of buildings in Grainger Town, including The Metropolitan at 33/39 Grey Street and Oxford House, which is on Grainger Street.

Councillor Tony Flynn, Chairman of the Grainger Town Partnership said: "It is vital for the long-term success of Newcastle that we have a wide selection of accommodation available in the City.

"Demand is outstripping supply in the centre of the city, so schemes like this are crucial if we are to meet Newcastle's full potential."

Thomas Chu of Chu Yuk Fun Enterprises said: "We are delighted that work is now underway and we are proud to be playing our part in the regeneration of Grainger Town. This project is a very different type of development which will add an important new dimension to Newcastle's property rental market."

John Williams, Deputy Chair One NorthEast said: "People are the lifeblood of any city, driving it forward both physically and socially. This innovative scheme will provide a great boost to Newcastle. Projects such as this, providing high quality accommodation will attract more and more professional people to both Newcastle and to the North-East in general."

Councillor John O'Shea, Chairman of the Grainger Town Residents Forum, said: "The promotion of city centre living is a key element in the Grainger Town regeneration strategy."

Coun O'Shea added: "This development tackles the challenge from a different angle and I am confident that it will contribute to the overall success of the project.