The former Peterborough District Hospital site has been sold to developer Lands Improvement Holdings (LIH).
LIH plans to create 300-350 new homes on the site as well as a space for a new primary school. Key historic buildings will be retained and a planning application will be made by LIH in the new year at which point members of the public will have their first chance to view the emerging ideas for the proposed redevelopment.
The NHS will receive £7.75m from the sale of the land. Peterborough and Stamford Hospitals NHS Foundation Trust will receive £7.44m in six stages over the next five years. These payments have already been incorporated into the Trust’s financial plans.
The Trust could potentially receive further payments through a profit sharing agreement it has secured with the developer. Cambridgeshire and Peterborough Foundation Trust, which owns a building on the site, will receive £311,000.
Dr Peter Reading, interim chief executive at Peterborough and Stamford Hospitals NHS Foundation Trust, said: “The sale has been a very complex process spanning more than two years. We are pleased to have reached an agreement with LIH, who not only put the most attractive offer on the table, but are a highly credible business with a long track record of delivering on challenging, large-scale regeneration projects.
“At every step of the sale process we have taken expert advice to ensure we are receiving the best price for the land at current market value.
“We are now pressing ahead with plans to construct a new accommodation block for staff at the City Hospital site to ensure they can move from the nurses’ home on the District Hospital site.”
Kevin Moriarty, managing director of LIH, said: “The regeneration of this large area in the heart of Peterborough city centre can now begin in earnest. It will be a complex project, and there is a huge amount to be done in terms of planning, remediation, demolition work and installing new infrastructure. But the end result will be a vibrant new area and we look forward to sharing our plans with the people of Peterborough in the new year.”