Lawyers play key role in city deal

Mar 10 2010 by Peter McCusker, The Journal

LAW firm Ward Hadaway has played a key role in the acquisition of a landmark development by Newcastle City Council.

The firm, which has offices in Newcastle and Leeds, provided construction and tax advice to the council on the purchase of the former Northern Rock Tower in Gosforth, Newcastle.

The 10-storey development was originally earmarked to house 1,500 Northern Rock employees.

However, during the building’s construction, the Newcastle-based mortgage bank collapsed and had to be rescued by the Government, and its expansion plans were shelved.

Newcastle City Council stepped in to buy the Tower which was completed in November 2008 at a cost of £30m to Northern Rock.

The council leased the whole building to Newcastle environmental services group eaga plc who in turn have relet one floor back to the council and one and a half floors to the Family Health Service Authority.

Now known as Partnership House it also accommodates employees from the Real Partnership, a joint venture company set up between the council and eaga.

The Real Partnership aims to become a £45m turnover business and will provide services to the public sector including payroll, benefits, council tax payments, IT and customer services.

Ward Hadaway provided a range of advice to Newcastle City Council on the acquisition of Partnership House, particularly on the construction aspects of the deal.

Ralph Wrighton, partner and head of construction, led the firm’s team advising the council, said: “Because of the history of the development of Partnership House, there were a number of important issues which had to be resolved before the acquisition was finalised.”

Nick Rowley, the council’s head of property services, said: “We are very grateful to Ward Hadaway for all their assistance and advice.”