NAPIER University has sold its historic Craighouse campus for conversion into flats.
The Craighouse Partnership, which acquired the 51-acre site for an undisclosed sum this week, also plans to build new properties on the land.
However, heritage groups said they would keep a close eye on future planning applications to ensure there wasn't too much development on the site.
William Gray Muir, managing director of one of the partners, Sundial Properties, said: "It is accepted that it needs a degree of new development to fund this site in the long-term.
"The size of that new development is what we need to agree on with the authorities and with loca l stakeholders."