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25 November 2013, 17:19 | Updated: 25 November 2013, 17:25
Peterborough's old district hospital has sold for 7.75 million pounds.
The Peterborough and Stamford Hospitals NHS Foundation Trust announced the completion of the sale of the site and associated buildings 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.”
Leader of Peterborough City Council Marco Cereste said: "This signals the start of another major development for the city and shows that Peterborough continues to go from strength to strength.
"The development on the former hospital site will create many new family homes and we have been negotiating with the developer to provide a site for a new primary school as part of the development. Important historic buildings including The Gables and the Memorial Wing will also be preserved.
"Coupled with the nearby developments on the former Vawser Lodge site and Midland Road - this will mean hundreds more families living close to the city centre to support the retail and evening economies.
"This is an important part of our wider ambition for the city centre and links up with improvements that we're already making. We invested in Cowgate and now we know that more and more people will be using this as their main route in to the city centre for work, shopping or going out."