The development in Stewart's Place partially collapsed in July last year.
Alliance Councillor Andrew Muir welcomed the plans.
He said: "Working alongside Holywood Conservation Group a brighter future has been secured for the building which rightly drew much ire from Holywood traders and residents alike as a result of the traffic chaos the road closure caused.
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"Through dogged determination to get the road re-opened and a real passion for saving our built heritage I am delighted to have played a part in saving this listed building and commend Lacuna Developments for the courage shown in taking on this building and pursuing plans which will hopefully turn this site into another great Holywood landmark. I look forward to working with the new developer and seeing this project through to completion."
(CD/LM)
