A popular Hove bingo hall could be demolished to make way for new retirement flats.

Gala Bingo has confirmed its hall in Portland Road has been sold to developers McCarthy and Stone.

The company wants to build 47 apartments for retired people in a £4 million project earmarked for the site.

Gala bosses have said there will not be any job losses and all staff will be offered positions at clubs in the area.

Robin Porter, operations manager at Gala Bingo, said: "Maintaining a presence in our premises in Hove has unfortunately become financially unviable.

"We very much regret any loss of amenity to our local members but a warm welcome awaits them in other Gala premises nearby."

A closure date has not yet been confirmed but is expected to be in early September.

McCarthy and Stone has applied to build a mix of one and two-bedroom flats.

Mike French, regional managing director of McCarthy and Stone, said: "The new scheme cannot come early enough as both of our recent developments in Hove and Brighton are almost sold out."

A final decision on the site is expected by the end of August.

Construction could start in March 2004 if planners give their consent and residents would then move in about a year later.

A spokesman for McCarthy and Stone added: "It is an ideal location for elderly people and is within walking distance of local amenities.

"There are also good public transport links and there is a clear demand for retirement properties in the area."