Former council offices at Bayard Place are set to be converted into 115 flats after planning permission was granted.
Works are expected to begin next spring at the city centre site with the hope that renovations will be completed within two years.
The Peterborough Telegraph understands that Secret Millionaire Mike Greene, who featured on the Channel 4 show eight years ago, is involved in the project.
Peterborough City Council has previously been marketing its former offices in Broadway for £6.2 million, with anyone seeking to take on the freehold e required to lease the site back to the authority for 12 months at a rent of £493,000.
Asked yesterday if Bayard Place had been sold, the council said a deal is still in progress.
Details on the potential buyer have not been revealed.
The plans for the development of the offices have been submitted by Brightfield Innovation Ltd.
Agent for the project David Shaw confirmed to the PT that the flats will largely be two bedroom, with works due to begin in the spring.
The units will mostly be for sale to the public, although it is expected some investors will buy flats to rent them out.
The appearance of the building will stay almost exactly as it is now, Mr Shaw added, albeit there will be different windows.
Planning permission has now been granted by the council’s planning department.
The offices in Broadway were until recently used for services such as housing before staff moved to the authority’s new building in Fletton Quays called Sand Martin House (see pages 22 and 23).
Staff working at the Town Hall in Bridge Street have also moved across to the new offices.
Bayard Place has five floors and an underground car park for 129 vehicles, according to a website advertising its availability. The website adds: “Bayard Place presents one of the few remaining opportunities to acquire a large detached freehold office building in the heart of Peterborough city centre.”