PORTSMOUTH City Council has submitted a bid to buy St James’ Hospital.
If successful, the local authority will redevelop the Milton site with residential and social care properties.
The bid marks the first stage of the process, with successful bidders going through to interviews to discuss their plans in more detail in the next round.
Councillor Gerald Vernon-Jackson, council leader, said: ‘Our formal bid marks a serious intention to use St James’ for much needed affordable housing and social care services such as a dementia support, while also being a commercial investment for the council.
‘The closing date for bids was last Friday so we hope to have feedback soon.
‘We understand the site is a much-loved area for residents and we want to make sure it's protected and utilised to its full potential.
‘Private investors might be looking for huge profits however as a local authority we're able to be more imaginative with our plans, which would also provide much needed social care support for our most vulnerable residents.’
The 25-acre NHS site has a mix of listed buildings and open space.
Solent NHS Trust, which provides community care for Portsmouth, will keep a small area of the St James’ Hospital land for its mental health services.
As previously reported in The News, the site went up for sale earlier this year and was marketed as the potential location for nearly 300 homes and a care home.