Millerbrook Properties is in talks with Rochdale Development Agency over a mixed-use redevelopment of Warwick Mill in Middleton town centre.
The 200,000 sq ft landmark building is currently fully occupied by warehouse tenants as an interim measure while the developer waits for the market to recover. Olympia Furniture is the largest occupier with 155,000 sq ft at £0.90/sq ft.
Manchester-based Millerbrook paid Redrow £1.85m for the building, along with one acre at the rear, 18 months ago.
Richard Ward, director of Millerbrook, said: "The building has not been fully occupied for 30 years. In the longer term we would like to see a business centre, residential and retail in the mill."
Tesco is on site with a new supermarket opposite the mill. Barratt has built town houses to the back of Warwick Mill.
Peter Hill, deputy chief executive of Rochdale Development Agency, said: "Millerbrook took ownership of Warwick Mill around 18 months ago and we have had some initial discussions with them as we are keen to see it developed. The mill was identified in the masterplan for Middleton as a focus for investment, however current market conditions are challenging."
Millerbrook has several sites in various stages of planning and development in Oldham, Rochdale, Stalybridge, and Ashton-under-Lyne and is in the market for further development opportunities.