The Berkeley Group and Land Securities have won planning consent from Portsmouth City Council for the latest phase of development at the£200 million Gunwharf Quays development on Portsmouth Harbour in Hampshire.
The council has approved plans to convert part of the Vulcan Building - originally dating from 1874 - into an art gallery, heritage centre and cafe on the ground floor, with 29 apartments situated on the upper floors.
The building is a Scheduled Ancient Monument, even though the north wing and central clock tower were destroyed during World War II by a booby-trapped German incendiary device. Berkeley has already rebuilt them both and Loch Fyne opened a seafood restaurant in the north wing earlier this year.
Berkeley Homes managing director Angus Michie, said: 'We are absolutely delighted to have found a long-term solution for this important building. Vulcan is a truly historic building and we have invested a lot of money to bring it back to a useable state.'