DEVELOPERS are set to make a £2 million profit in just two years with the expected sale of the dilapidated Astoria cinema.

Several bids have been submitted, believed to be in excess of £7.5 million, for the 84-year-old Grade II listed building in Gloucester Place, Brighton.

Residents have raised concerns a new owner may use the site for student accommodation – something they have fought against for two years.

But property experts said the sale was a positive move which could finally see the site redeveloped after more than 20 years of standing vacant.

ThreeSixty Developments won a planning appeal in December for 70 flats and commercial workshops and had originally intended to develop the site itself.

But the it was taken over by “global student accommodation leader” GSA and a Singapore wealth fund in September with the firm now focusing on student accommodation in London.

A closed bidding auction was held earlier this month with the seller now weighing up its preferred party. The redevelopment would become the city’s first private rented sector scheme new-build with 24-hour concierge and security management and a communal living space.

The current consent comes with a £2 million developer contributions’ bill for affordable housing, education, transport and employment.

Maxine Horn, of Blenheim Place, said residents were concerned a Savills’ brochure for the sale said the site would be suitable for student housing.

She said: “It’s just frustrating. We do need to progress with it, we know it needs to be redeveloped but if it does go down that road again and the new owner does bid for a change of use to student accommodation we are all going to have to start again.

“It was never an issue about it being developed but we have concerns about any development creating a huge footfall through Blenheim Place and other concerns surrounding security and bins.”

Property expert Phil Graves said the nature of the sale suggested any new owner would look to build the most recently consented scheme with just “a few minor tweaks” rather than a radically different proposal.

He said: “I think it is a viable scheme this time around. The last three or four owners have gained planning consent and then moved the building on which works for them but doesn’t really work for the city.

“Hopefully, in maybe 18 to 24 months, there could be a new Astoria building bringing much needed new city centre housing.

“A closed bidding system is not uncommon and is a good way to flush out the serious parties and the not so serious. They have to provide evidence beforehand.”