A new type of grant from the Heritage Lottery Fund (HLF) has been awarded to the Northern Counties building in Derry-Londonderry, Northern Ireland, securing funding to transform it from a decaying shell to a boutique hotel.

The Northern Counties building is the first of its kind to receive the new “Heritage Enterprise” grant, with £784,000 awarded to the Inner City Building Preservation Trust (ICBT) for necessary conservation works and extensive remodelling.

Built in 1899, previously a private members’ club and then office space, Northern Counties has stood empty since 2005. Its transformation will include vital repairs, the creation of a restaurant and room for 45 new jobs, whilst boosting the city’s tourism potential.

The “Heritage Enterprise” grant comes as a result of a major piece of research called New Ideas Need Old Buildings, undertaken by Colliers International, Spirul Research and Oxford Economics, which demonstrated the positive impact that historical buildings have on the UK’s economy and their capacity to contribute to its growth. One of the key outcomes of the study was that commercial businesses based in historic buildings generate more wealth, on average, for the UK economy was a whole.

Paul Mullen, Head of HLF in Northern Ireland said: “This new programme is allowing us to support the vital partnerships needed between the community and the private sector to unlock the commercial potential of neglected treasures like The Northern Counties, so they can once again contribute to the economic success of their local communities.”

Over the next five years, the HLF has committed to offering £25m per annum with grants between £100,000 and £5m to non-profit organisations in a bid to further the commercialisation and survival of heritage buildings throughout the UK.