The historic heart of Portsmouth Naval Base could be turned into a bustling residential and business quarter under radical plans unveiled by its commander.

Some 30 acres of the western part of the base could be released for private development to save upwards of £25m – money which will be ploughed back into upgrading facilities for future destroyers and aircraft carriers, as well as for sailors.

The area proposed to be leased includes the Old Naval Academy – serving as offices and a wardroom – Anchor and Stoney Lanes, Short Row and the Block Mills.

Naval Base Commander Cdre Amjad Hussain said these buildings – many dating to the Georgian and Victorian eras – had served the Navy well, but no longer met the needs of the 21st Century Fleet.

“British Naval history is in the bricks and mortar of this site, but with a modern Navy we do not have much application for some of these buildings,” he said.

“We want something which is more useful for us and for the community, but at the same time we need to safeguard the security and operational nature of the base. That will not be sacrificed.”

Cdre Hussain and his staff, plus Portsmouth Naval Base Property Trust which looks after the existing historic dockyard area open to the public, will begin drawing up detailed plans for the site.

Much is still to be decided, including the specific boundaries of the area being considered for leasing.

The Georgian dockyard is divided at present – the public’s access into much of the historic yard is prevented by security fencing, although the site has been opened up for one-off major events such as the International Festival of the Sea.

The hope is that when revamped by the end of the decade, the area will mirror the mix of residential, shopping and leisure uses in nearby Gunwharf Quays, on the site of the former HMS Vernon.

Although little remains of Vernon, any developer of the dockyard will have to preserve its character as most of the buildings are protected by law.

They currently house a mix of offices and storerooms, which will be relocated to other parts of the base in more suitable accommodation.

“We have to be extremely sensitive in what we use these buildings for,” said Peter Goodship, chief executive of the property trust.

“We are dealing with properties mainly from the 18th and 19th Centuries.

“I think it’s inevitable that there’s going to be interest in the area, and the Georgian dockyard will once again be reunited after many years of separation.”

Not included in the area for lease are the Naval Base headquarters in Semaphore Tower, as the future carriers will be berthed close by in years to come, and the Second Sea Lord will continue to use Admiralty House as his official residence. Plans to change to St Ann’s Church are not envisaged, either.