A LONDON developer who bought Derby's former Hippodrome theatre for less than £400,000 two years ago has put it up for sale for £1.2m.

Christopher Anthony said the hefty price tag reflected the debts he built up from repeatedly remortgaging the Grade II-listed building to pay for work he had done to it.

But since he bought the Green Lane site in May 2007 it has suffered severe damage, including a fire, and parts of its roof and sections of wall collapsing as Mr Anthony's contractors carried out work on the building.

And one property expert today questioned the seven-figure valuation.

The unnamed agent said he believed that even if the land came with permission to demolish the listed building so it could be redeveloped, which it currently does not have, it would only be worth around £500,000. Otherwise, he said it was "of little value".

Mr Anthony said the building had been a "nightmare".

"I have the bank breathing down my neck," he said.

"It is not really my building, it is the bank's and I can't sell it for less than I owe. This has put me in a really awkward position financially.

"I have spent so much on it. The majority has gone on asbestos removal, then repairs and liaising with the council."

He said other costs had included architect fees, surveys, protection, stamp duties and interest payments.

The building has landed Mr Anthony in legal as well as financial difficulties on more than one occasion.

After the old theatre's roof collapsed in March 2008 as Mr Anthony's contractors used heavy machinery to work on it, Derby City Council took him to the High Court to get an injunction preventing him carrying out any further work on it.

Now the authority is taking further legal action against Mr Anthony and his contractor Wayne Watson, alleging they carried out unauthorised work on the listed building.

Both men have pleaded not guilty to the charges and the case is due to be heard at crown court next year.

Richard Williams, assistant director of regeneration and community at the city council, said: "Anyone wishing to purchase this building will need to be fully aware of Mr Anthony's current position with the council as well as his own financial liability."

Meanwhile Mr Anthony has submitted plans for a 346-space multi-storey car park on the site but said he was willing to walk away from that idea if the building could be sold.

The car park plans have sparked opposition from campaigners who want to see the building restored as a theatre.

Mr Anthony said he had offered the building for sale to several groups, including the Derby Hippodrome Restoration Fund, on previous occasions, without detailing a price, but had not received an offer.

He said: "No-one in Derby has come up with a sensible solution for the building."

Joan Travis, chairman of the Hippodrome Restoration Fund, said she was not aware of any approach by Mr Anthony in relation to buying the theatre.

She said: "Mr Anthony should be putting it right and repairing the damage that has been done to the Hippodrome before he even thinks about selling it.

"The best thing Mr Anthony could do is to cut his losses, give the building back to the council and forget about it all."