Eye hospital bid collapses

Multi-million plans to buy Wolverhampton's historic eye infirmary and transform it into 100 flats collapsed this afternoon just hours after it was revealed the deal was close to being sealed.

Campaigners now fear the landmark building in Chapel Ash, parts of which date back to 1856, will become derelict.

This morning agents said they were hopeful of a deal being signed after confirming they were in talks with an unnamed major developer.

However, this afternoon it emerged the deal had fallen through and the site would now have to be re-marketed.

Signs around the landmark Chapel Ash building say today it is 'under offer'.

Gary Penn, estates development manager for The Royal Wolverhampton Hospitals NHS Trust, said the sale was expected to generate around £3 million to pay off some of the trust's debts.

Mr Penn said: "We are now looking to re-launch it on the property market in the next month.

"We want to work out a planning brief with Wolverhampton City Council. The brief would look at whether it would be a conversion due to its listed status."

The site on Compton Road has been up for sale since its controversial closure a year ago when services were transferred to New Cross Hospital in a £4.5m move.

The building is locally listed, which means any homes development would be restricted.

Colin Totney, spokesman for agents Birmingham-based Bigwood, this morning told the Express & Star talks negotiations with an unnamed developer were at a "very sensitive stage". He said: "We are hopeful of a result in the next few weeks."