Luxury spa mooted for Jesmond Dene House amid plans for former nurseries

Boutique hotel Jesmond Dene House is set to expand and create a luxury spa as part of plans for a prime piece of development land in Newcastle .

The former Jesmond Dene Nursery site in Newcastle was initially put up for auction a year ago by Newcastle City Council , with a guide price of £4m.

However, that auction was extended and altered when an agreement was made to separate the historic Real Tennis Club from the land deal.

Planners have since pondered over bids for the remaining land, which includes cleared land, a number of vacant buildings and historic police stables.

Now it can be revealed that retirement home specialist PegasusLife has been chosen by the council as a preferred bidder for the Jesmond site.

Its plans for the plot of land would see Jesmond Dene House extended through the redevelopment of the old police stables to create new hotel rooms and a spa.

Subject to contract, PegasusLife is aiming to deliver a mix of 91 later living apartments and, with joint venture partners, 18 executive family homes.

Early plans also include restoring the stables to provide 30 additional hotel bedrooms as well as a spa facility.

The developer has chosen Killingworth-based FaulknerBrowns Architects to deliver the project as well as another in the local area.

Operationally, the business offers properties with 1,000 year leases, not-for-profit management fees and does not charge exit fees.

Howard Phillips, CEO of PegasusLife added: “We are thrilled to be picked as preferred bidders for this project. We look forward to working with the local authority, and other local businesses, to help deliver high quality housing in Jesmond.”

Peter Candler, managing director of Jesmond Dene House, said: “Jesmond Dene House is looking forward to working with Pegasus Life over the coming months to create an exceptional development that not only allows the hotel to realise its aspirations to expand and grow but also creates very high quality housing that complements the hotel and does justice to the historic setting. We’re genuinely excited about this opportunity.”