A new housing project is being planned for a former care home run by the Sisters of Nazareth after the successful sale of the building.
Nazareth House, on Bishop Street, had been placed on the market with a guide price of £750,000.
Choice Housing, the largest independent housing association in Northern Ireland, has now successfully purchased the building.
The organisation, which is based in Belfast, describes itself as being at the ‘forefront of in the provision of social housing’.
Choice Housing was formed following the merger of Oaklee Trinity and the Ulidia housing associations.
A spokesperson for Choice Housing confirmed it hoped the new homes would be completed over the next year.
“Choice Housing Ireland has successfully completed the purchase of Nazareth House,” the spokesperson said.
“We are currently awaiting confirmation of a Pre-Application Determination meeting with the Planning Authority to discuss the Associations proposals for development.”
“The proposed housing will be for general needs, family housing and planned for delivery in 2016/2017.”
The property comprises the original building which dates from the early 19th century along with two more modern wings built circa 1960.
The property was historically used as a care home for both children and the elderly and was run by the Sisters of Nazareth.
It was operational until September 2013.
The original building consists of a four storey stone and red brick structure and accommodates a number of administrative offices, reception rooms and a dining hall with the upper floors generally containing the residential accommodation.
A single storey chapel lies to the left of the building and a three storey bedroom block.
There is a three-bedroom bungalow located at the southern end of the site with separate access off Foyle Road.
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