Speculation is continuing to mount about future plans for a former Community Health Clinic in the centre of Horncastle.
The News can reveal the 0.5 acre site - on Manor House Street - has been sold by the NHS for a six figure fee.
NHS Property Services have refused to reveal any details about the buyer.
Some residents are claiming the site could be used for a new supermarket.
Discount giants Aldi have been linked with the town and say they have identified a potential site.
However, a source close to local planning affairs has told the News it is “highly unlikely” retail development would be allowed at the site because of access issues.
Manor House Street is a dead end and the only access off the town’s Market Place is already regarded as something of a bottleneck.
In addition, the former clinic site is next door to the popular Community Centre where officials have had problems with access.
A spokesperson for NHS Property Services said: “The former health centre was declared surplus to NHS requirements by local clinical commissioners.
“Our role is to secure best value for NHS assets which are no longer needed or suitable for modern health care.
“The building had been vacant for some time and there was no interest from other public sector buyers, so after a valuation by the District Valuation Service it was sold at public auction at the end of October to a private buyer for £125,000.
“Proceeds from the sale of surplus NHS assets are returned to the health service for the benefit of patient care.”
Some of the clinic’s functions were transferred to other NHS facilities - including the War Memorial Hospital.