THE sale of one of York's most prestigious period buildings at an asking price of an estimated £1.5 million could bring in much-needed funds for York Minster.

The Dean and Chapter of York are selling Grays Court, a three-storey Grade I Listed Building in the shadow of York Minster and the Treasurer's House.

It is the first property in 30 years to be sold by the church body, which manages a portfolio of around 60 commercial and residential properties in the city.

The sale was prompted by York St John College's decision to vacate the property next month, after renting it for teaching purposes for many years.

A college spokeswoman confirmed that staff and students will be relocating to the newly refurbished Holgate Centre in Lord Mayor's Walk.

The proceeds of the sale are set to be invested in the stock market, and could generate funds for the cash-strapped York Minster.

But Martin Vevers, Chapter Clerk at the Minster, said those gains would be balanced against the loss of the rental income the property currently enjoys.

Mr Vevers said: "This is a major move. We don't sell properties on a regular basis. The last one I think was sold in 1975.

"I gather from our agents, Carter Jonas, that there has been quite phenomenal interest in it (Grays Court), especially as we only marketed it after Christmas. All the options were looked at - whether we put it back on the market to re-let, whether we use it ourselves or whether we sold it.

"The recommendation from our finance committee and our agents was to sell it.

"The money will go back into the investment pot and will probably be put into the stock market. The money is not earmarked for any specific project, it's just good housekeeping."

The Dean and Chapter purchased the property around 50 years ago for "a few thousand pounds" from the Gray family.

The property dates back to the early part of the 1600s, although parts of the rear elevation and third storey level were added during the late 18th and 19th centuries and the main front elevations includes stonework dating back to a 12th century building.

Grays Court, which has gardens backing on to the city walls, is being marketed as suitable for a variety of uses including office, leisure, residential and educational uses, subject to planning permission.

According to the sales brochure, City of York Council and English Heritage would prefer single occupancy of the property, and reservations have been expressed against any intensive residential development.

Updated: 08:43 Tuesday, January 25, 2005