Devington Homes has acquired Plymouth’s historic Grand Hotel with the intention of developing an £8m apartment scheme.
The 129-year-old Hoe building, severely damaged by fire five years ago, has been the subject of a three-year planning battle.
Falmouth-based Devington agreed to acquire the building from Classic Lodges of Chorley, subject to planning.
Permission has recently been secured following a planning appeal.
Lawrence Butler, Devington managing director, said: “I realise that the decision to go ahead now will raise a few eyebrows in view of the perceived unfavourable market conditions.
“But this will be a one-off residential project for which I am convinced there will be great demand.”
The building will be converted into 24 2 and 3-bedroom apartments in a scheme due to complete in late 2009.
