A YORK private school which controversially closed five years ago has been sold, opening the way for a planning application for a mixed development of offices and housing in the heart of the city.

The empty three-storey cluster of listed Georgian buildings which was York College for Girls just yards away from York Minister in Petergate was placed on the market for offers of more than £2 million in June by its owners, Sir John Fitzgerald Ltd, the North Eastern hotel and pub company.

Buyer - for an undisclosed sum - is George Houlton & Sons, the Hull firm responsible for revamping Mill House in George Hudson Street, York, into new offices for the council and is in the process of converting the former Co-op building there into an hotel.

Richard Sharp of Behrens Sharp, property advisers acting for Houlton, said: "At the moment a number of options are being examined and it could be that ultimately we devise a mixed use scheme."

He ruled out the prospect of the building's conversion into a new city centre hotel but said:

"Whatever is decided will almost certainly mean submitting a new planning application."

Another certainty is that any scheme there will be carefully scrutinised by the city's planners given that the site has an "education only" listing.

There are also problems of vehicle access because Petergate is pedestrianised during the day.

But provided these hurdles can be overcome, Houlton stands to make a killing if it can get permission to include luxury flats or offices in its conversions.

Growing demand for flats in the city centre has recently boosted the price of land to about £1 million an acre.

The £1,600-a-term school closed in October 1996 in spite of protests on the steps by more than 40 pupils and parents.

At one stage parents were so angered by the closure plans by The Church School Company that they barricaded the then head teacher Erica Taylor and two other teachers inside the building.

Two years later the empty building was bought by Sir John Fitzgerald Ltd but in the three years since then, it has submitted no planning application for the site "because of other commitments."

When the school again went on the market six months ago, the interest was huge.

Jamie Wheldon of the York office of DTZ Debenham Tie Leung, which acted for Sir John Fitzgerald Ltd, said: "At one stage we were showing people around every day .

"The interest from local, regional and national agents, developers and occupiers was amazing. It's an outstanding development opportunity.

"It will be wonderful to see that important part of the city brought back to life."