A redundant landmark building in Colchester is on the brink of a deal to turn it into flats or a hotel.

But the Royal London complex, on the market for £6.5m, is likely to stand empty for at least a year, because of essential refurbishment at the 20-year-old site.

Earlier this month, the final seven Royal London employees left their desks at the Middleborough office for the last time.

Now property dealers in London and Ipswich are trying to find a new owner for "Colchester's second castle".

Speaking on Thursday, Paul Smith, of London-based real estate agents Weatherall Green and Smith, said he was looking at options for the structure not limited to office space.

He said: "If we have flats on floors three and four and then office space under that amounting to 30,000sq ft, then we have almost entirely mopped up all the space."

He said developers suggesting a hotel use for the 120,000sq ft building were still on the shortlist of "entrepreneurial developers" holding talks.

But Mr Smith added a note of caution about the sale. He said: "Colchester is not everyone's cup of tea. It is a very closed specialist market. There is a lot of work that needs to be done. The building is 20 years old and there needs to be new lifts, air conditioning, everything."

The building has been empty since Royal London made 750 staff redundant following its acquisition of United Assurance in April last year.

By David Grocott

Reporter's e-mail: david_grocott@thisisessex.co.uk

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