Wales Property Josh Morris

The preferred candidate to redevelop a historic former hospital in North Wales is set to be revealed in the coming weeks, with two sets of plans for the site currently under consideration, Insider can reveal. One scheme, led by Cardiff Coal Exchange developer Signature Living, comprises two hotels and luxury homes.

The former North Wales Hospital in Denbigh has been at the centre of a long-running planning dispute and is currently owned by Freemont (Denbigh) Ltd, a development company based in the British Virgin Islands.

The grade II-listed former asylum is the subject of a compulsory purchase order (CPO) from Denbighshire County Council, which previously planned to hand it over to the Princes Regeneration Trust in order to develop the land and safeguard the main hospital building.

The site continues to attract urban explorers and has suffered repeated incidents of arson in recent years, with the latest coming last week.

Laurence Kenwright, of Liverpool-based Signature Living, said his proposals would "shine a light on Denbigh".

"We will create two luxury hotels, a range of residential homes and create 450 long term hospitality jobs in the process," he added. "In addition to this we will also create 250 local jobs relating to the building process.

"As part of our proposal we will also build a training centre of excellence for the hospitality industry creating a further 100 jobs. This training centre of excellence will become a hub to help serve Signature Living’s hospitality expansion, as we will soon be trading from ten hotels throughout the UK with plans to expand into Europe."

Signature Living currently trades from fives hotels, with eight more in the pipeline which could create 1,000 jobs.

Kenwright said: "If we are successful with our plans for Denbigh that total will increase to 1,450 new jobs, which will be facilitated from our centre of excellence within Denbigh Asylum.

"Our track record as a developer, owner and operator over the last ten years has clearly demonstrated that we have the necessary expertise and skill set in the regeneration of listed historical buildings. We breathe new life into these tired and often derelict listed buildings, turning them into thriving hotels and businesses. We have also devised and created a very unique funding model for these types of unique developments. Signature Living, has been funded on these un-bankable schemes through our network of 850 individual investors. Those investors know and trust our model, coming into a scheme at an early stage and funding the entire process, taking the site from absolute dereliction into a thriving successful commercial entity.

"When we took on the Coal Exchange Cardiff in 2016 the Grade II star listed building had a cost to refurbish in excess of £42m and an end valuation of just £35m. This meant that when took over ownership we had actually signed up to a minus £7m valuation.

"Denbigh planning department have already passed plans and approved the demolition of 80 per cent of this building. They cite the basis for this permission to knock down these buildings on the grounds that they do not believe there is a commercial reason to justify keeping these structures.

"We have proven time and time again that these buildings can be saved and that by doing so once again becomes a tourism beacon that will not only help create jobs but help to bring tourists from all over the World."

A spokesperson for Denbighshire County Council told Insider two sets of plans were currently under consideration with the preferred candidate to be announced "within the coming weeks".