York's Lendal Tower and its two adjacent buildings have been sold for about £1 million to a Pocklington property development company.

The new owners of one of the city's most historic landmarks, the Helmsley Group, paid close to the asking price from existing owners Keyland Developments.

Now the Helmsley Group is to meet City of York planners, the Museums Trust, English Heritage and the Environment Agency to work out how the site, which dates from the 14th century, can be sympathetically developed into homes along with possibly a restaurant and other facilities.

Richard Peak, director of the Helmsley Group, said that a further £750,000 would be spent on the Grade II Listed Building, which was originally a defensive emplacement and later adapted as a waterworks before being transformed into a boardroom for York Waterworks, for which it became a symbol.

Mr Peak said: "We are hopeful of getting in a first-stage planning application by the end of August.

"With a fair wind, refurbishment of part of the listed building could be ready by next June, but it will be part of a much larger plan to improve the whole of that corner of Museum Gardens."

Keyland, a sister company of Yorkshire Water, which eventually bought out York Waterworks, reported that there were more than 20 serious bidders for the site.

The Helmsley Group, based at Colenso House in Deans Lane, Pocklington, has a track record for sympathetically developing historic buildings in York.

It was responsible for transforming 5 Duncombe Place, York's former probate office opposite York Minster, into four luxury apartments, and redeveloping the listed Varvills warehouse as part of the Ouse-side Merchant Exchange building into 23 apartments and a restaurant.

Updated: 10:31 Friday, July 09, 2004