The French Convalescent Home has been sold to a firm which plans to convert the building into luxury seafront flats.

Glade Dale Homes Ltd has bought the historic Kemp Town building and has been told "in principle" it will be allowed to convert the building into 16 flats which could sell for up to £250,000 each.

Bovis Retirement Homes was due to become the building's new owners yesterday but it has now emerged Glaze Dale bought out the contract several weeks ago for just over £1.5 million.

The Surrey based firm has had early talks with Brighton and Hove Council's planning officers, who have said the conversion is likely to be approved provided the listed building's original features are preserved.

The building in De Courcel Road housed dozens of elderly people and was originally being sold by its French trustees to Bovis, which planned to knock it down and put up sheltered accommodation.

An Argus campaign to save the home resulted in the building becoming listed in January and forced Bovis to withdraw the scheme.

The Grade II status meant strict guidelines came into force preventing the home from being demolished and limiting internal alterations such as moving walls, staircases or unique internal glazing.

The firm then announced it would put the home on the market as soon as it became the owners.

Glaze Dale Homes was set up eight years ago and specialises in converting listed buildings.

A spokesman for Glaze Dale Homes said it was unlikely the building would be sold to a consortium of the home's previous management.

Des Turner, MP for Kemp Town, said he was "amazed" at the sale.

He added: "I hope, for the new owner's sake, they know what they are doing because I think they have exposed themselves to a serious risk of losing their money because I don't think the listing conditions allow for any residential conversion.

"If they can do a conversion and get past listing I would be amazed."