Government-owned property and regeneration firm London and Continental Railways (LCR) has acquired Midland House in Derby for £2.8m.

The high-profile 19th century heritage building is next to Derby railway station. Built in the early 1870s, the 55,000-square-foot building was originally the headquarters for Midland Railway, which was established in 1844 and was the largest employer in Derby in the early twentieth century. In more recent times, the building has housed a free school and a Covid vaccination centre.

Derby City Council (DCC) has identified the area for regeneration, aiming to create a new, more effective gateway to the city centre. The Council loaned LCR £500,000 to make the deal possible.

LCR and DCC are now working to bring forward a regeneration masterplan for the station area as part of the wider regional growth story. The plans will then be subject to consultation with residents, local businesses and other stakeholders.

Along with the Midland Hotel and the remaining Railway Cottages, it is one of the city’s unique rail heritage buildings on the west side of Derby rail station and forms a key component of regeneration plans for the area.

The sale of the building to LCR ensures that the heritage of the building will be protected as it remains in public hands.

The transformation of Derby has gathered pace in recent years, with the Castleward and Derbion projects among those aiming to provide new housing, amenities and public realm. The news also follows the confirmation last month that Derby will be the home of the headquarters for Great British Railways, chosen from forty-two towns and cities which applied.

Karl Drabble, regional director at LCR, said: “It is an exciting time to live, study and work in Derby, with plans to transform the city and its surrounding areas already moving at pace. News of Great British Railways‘ arrival will only galvanise these, and it’s crucial that the area around Derby station, which has long been under-loved, provides a gateway that is symbolic of the direction the city is heading.

“We’ll be working hand-in-hand with Derby City Council to kickstart plans to regenerate the area, and the iconic Midland House will play a crucial role. Residents’ and visitors’ experience will sit at the heart of efforts to revitalise the area, and in partnership with the council, we want to ensure that the area is an exciting space for people to live and work again.”

Rachel North, Deputy Chief Executive (Communities and Place) at Derby City Council said: “The news of the acquisition of Midland House by LCR is particularly welcome now that Derby has been confirmed as the new home of Great British Railways. It is an important building close to Derby station and its heritage will be protected. As well as having a proud rail history, Derby has an exciting future.

“The planned regeneration will help build the potential of the city’s Railway Conservation Area and continue to make Derby a more attractive place for residents, businesses, tourists and investors.”