A PROMINENT town centre building is set to be sold for £160,000 less than the asking price — and bosses are blaming the credit crunch.

An offer of £200,000 is about to be accepted for the former Smiles on Faces children’s nursery, St. Peter Street, Blackburn.

The building had been put up for sale in September 2007 for £360,000.

Owner of the building Ann Wainwright said: “In the current financial climate this very low offer will be accepted in the next few weeks if no other offers are forthcoming.

“The present £200,000 bid is from a religious charity which wish to turn it into a community centre.”

In December 2006 Smiles on Faces was closed by closed by Ofsted because children "would be or may be exposed to risk of harm."

In 2006 we had revealed the nursery was located next to a bail hostel.

Ms Wainwright said at the time that running the nursery had become too much of a strain because of health problems.

A potential buyer was found last year but the deal fell through and the building has been on the market since September 2007.

The building is a former Sunday school and Jehovah Witness centre.

Fixtures and furniture, including the £60,000 soft play area are to be auctioned of separately in the coming weeks.

Richard Prest, of Blackburn Civic Society, said: “It’s not uninteresting building, but it’s fairly typical and is not listed.”

Sale of the building is being handled by Edward Symmons Surveyors.