Nearly an acre of unused land in Uckfield is to be sold by the county council so a specialist dementia and mental health care home can be built.
The land, between Highview Lane and Castle Rise, has been unused since the former Ridgewood Rise old people’s home was levelled in 2009.
Originally the county council hoped the site would be developed as a care home but no offers to develop were received.
Now the council has accepted an offer from St Matthews, subject to detailed negotiations.
St Matthews has said it is interested in developing the site for a specialist dementia and mental health care home, including single-person accommodation, day therapy suite, outreach and consulting offices.
“The service will offer residential care on a short-term or long-term basis to older people with dementia and varying degrees of challenging behaviour,” the county council said.
It added that it was difficult to place patients with dementia.
The council admits more money for the site could have been obtained if it had been sold for housing.
It is disposing of the land to St Matthews under powers contained in an Act of Parliament which enables it to sell land at less than market value if the sale is likely to contribute to the promotion or improvement of the economic, social or environmental well-being of the area and that any discount on market value is less than £2m.