A prominent building in Newport city centre looks set to be transformed into around 50,000 sq ft of grade A office space, in a major boost for the city centre.

Cardiff-based Garrison Barclay Estates Ltd bought the building in Mill Street close to the city's railway station from Industrial Automation Control Ltd for an undisclosed sum.

It plans to transform the five-storey building, which was previously owned by the Royal Mail, into one with a contemporary 'raw' feel unique to Wales, following a total investment of around £10m, and hopes it will ready for businesses to move into by late next year.

Ian Carter, development director of Garrison Barclay Estates Ltd, said the office scheme was one of a number of possibilities the company are considering but 'it is our preferred option'.

He said: "We believe that as part of the ongoing growth of Newport (which is marketed as Wales First City), to have a landmark building that is both prominent in the city and clearly visible as the first city centre building you see from the train as you approach on train, represents a fantastic opportunity for us to do something special. There is a lack of available quality office space in Newport which offers the flexibility of our scheme and its proximity to the railway station makes it an equally important development in the wider context as part of the Cardiff Capital Region: City Deal.

"We chose the building because we see Newport as a City with fantastic potential which is just starting to be realised. The City Deal, M4 relief road and lifting of the Severn bridge tolls will only serve to bolster this position."

IAC Ltd marketing and HR director Kath Lewis said: “We’re very pleased to have completed the sale of our former headquarters building. We’ve owned it since 2001.

"We moved out in 2010 when we relocated the majority of our operation to Delta House at Queensway Meadows. Since then we have been using a single floor in Mill Street for our printed circuit board assembly business. That and its eight strong work force has now been relocated to a new premises at Maesglas Industrial Estate.

“We are delighted that this significant city centre building will now be revamped and be used to create a high value employment in the centre of the city of Newport. It was of crucial importance to us as a Newport-based business that whoever we sold the building to would bring demonstrable benefits to the city centre with its plans for the premises.”

Ian Carter said: "We engaged Rio Architects to come up with a scheme that creates a real statement and firmly believe that what they have done so far demonstrates the investment that we plan to make in the building. This is not a light touch scheme."

He said the 50,000 sq ft of space could be broken up into individual space for a single person or whole floors if required.

There is onsite parking under the building and to the rear and side.

He also said that he hoped plans for a new footbridge across the railway line would go ahead.

"We think the location close to the city centre and train station is a major selling point. Any improvements such as the new bridge could only improve this commanding position."