The old brewhouse at the former Morrells Brewery in Oxford is being demolished to make way for luxury homes. The development will be carried out by builders T H Kingerlee and Sons.
Rival pub groups are reportedly putting in offers for the 131 Morrells pubs, which were sold in 1998. The pub company, now called Morrells of Oxford, is owned by hamburger chain boss Michael Cannon.
The £15m St Thomas Street scheme will include 79 new homes and the landmark brewery chimney and some of the old buildings will be kept. It is due to be completed by the end of next year.
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