Buccleuch Property has sold part of the site of the former Tyne Tees television studio in Newcastle for a housing development designed by Glasgow architects.

The commercial property arm of the Duke of Buccleuch's estates says work will start this month on a five-storey £3.5 million residential development designed by Anderson Bell Christie. The 30-apartment project is supported by £900,000 from the Homes and Communities Agency to enable affordable rents and shared ownership sales.

Buccleuch development director Sandy Smith said he was delighted the sale would provide housing to meet local needs. "The mixed use site will also include a hotel and student accommodation provided by U-Student, who have already acquired part of the site and are currently constructing a 385-bed scheme scheduled for completion in August 2014."

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Buccleuch Property has offices in Edinburgh and London and a market exposure of £350m through a UK-wide investment portfolio and a range of development sites with a pipeline in excess of 2m square feet.

In Glasgow the business is developing Scotland's biggest hotel on a site near Central station for Motel One, the German chain which opened its first Scottish hotel in Edinburgh 13 months ago, working with developer Chris Stewart Property, and is soon to open a second on Princes Street. Its Glasgow site is due to open next year and overtake nearby Jury Inn as Scotland's largest hotel.

Buccleuch also redeveloped the Aberdeen Science Parks and built the Dalkeith headquarters of the SQA on the Duke's extensive estates.