Anglia Polytechnic University is poised to turn historic Danbury Palace, into a exclusive mini-village and net itself a financial windfall.

The APU want to convert the redundant conference centre into up-market flats, maisonettes, and sheltered accommodation, as well as building six affordable homes.

Its coach house-stable block will be turned into an internet cafe and children's play area.

Built in Tudor style in the early 19th century, the former residence of the Bishop of Rochester and stands in seven acres of landscaped gardens, could, according to a Chelmsford estate agent, be worth up to £15m.

Danbury parish councillors have already seen the proposals and planning chairman, Cllr Colin Budgey, commented: ''I am personally in favour, with some reservations, about the proposal.

''We have to consider the future of the Palace and the need to generate money to sustain its costly upkeep.

''We are not talking about a housing estate, but just 46 housing units.''

An outline planning application to Chelmsford Borough Council after the ambitious project is officially launched at a public exhibition at the Centre which opens on Friday, September 3, at 5.30pm, and the next day between 10am and 4pm.

APU press officer Mark Cole said the public were welcome to comment on the project, emphasizing that the ''proposed regeneration'' would secure the future of the Palace.

Published Friday September 3, 2004