When is a conservation area not a conservation area?

I don't see it as sad at all. It's an old, probably very ugly and expensive to maintain building, which will be replaced by a modern building for precisely the same purpose.

I think the tendency for some people to want the whole of Britain to be turned into a museum is a very dangerous one. Even more so, if it's being done at public expense.

There are worse examples, though. The worst, currently, is probably the plan to spend £3,000,000,000 (budgeted; will probably be more) on revamping the crumbling pile of Victorian mock-Gothic stone known as the Palace of Westminster - at the end of which it will still be unfit for purpose. All this, while there are empty office blocks all over London going begging.
 

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