THE sale of a landmark warehouse which is to be the base for several hundred council staff has been completed.

The former Hugh Mackays Carpet factory on Meadowfield Industrial Estate, in Durham City, is to get a new lease of life after being sold to Durham County Council for an undisclosed seven-figure sum.

The authority is relocating its Service Direct workforce from two separate sites, in Bishop Auckland and Framwellgate Moor, to the premises.

The site can accommodate up to 400 workers, including 180 office staff, and will be home to the council's ground works and highways departments.

Along with the 150,000sq ft warehouse building, the authority has also bought adjoining land to the rear, from One NorthEast, for additional storage.

Newcastle-based property consultants Lambert Smith Hampton handled the sale.

Company spokesman Matthew McIntosh said he was delighted that the former factory had been sold to an occupier, rather than a developer.

"We're delighted this is an occupier sale and wish the council every success in their new premises," he said.

"The team is delighted to have found a new use for this strategic site.

"We hope that Service Direct are happy in their new premises and benefit from having their operation all under one roof."