A former mental health hospital on the market for more than eight years has finally been sold for a “substantial” sum.
Severalls Hospital, in Colchester, closed in 1997 and the site has long been planned for homes.
Outline planning permission was granted by Colchester Borough Council in 2006, and part of the site to the south of the new Via Urbis Romanae has nearing completion as the Olympic estate.
Sale of the rest of the land by the North Essex Partnership University NHS Foundation Trust (NEP) and the Homes and Communities Agency was hampered by the recession.
But the sale of the 104 acres to the Severalls Consortium, made of Bellway, Taylor Wimpey and Bloor Homes, has now been completed.
A NEP spokesman said: “We are delighted to have sold Severalls.
“Contractual agreement prevents us from disclosing the final sum. However we can say that it was sold for a substantial competitive market price.
“Money released is being ploughed back into our services and facilities for patients.”
A planning application is currently before the borough council for reserved matters on the site, looking to build 730 new homes as well as 20 units in the refurbished Grade II-listed parts of the hospital.
A Bellway spokesman said: “We are hoping to get the results of this application in March. Following this, for our portion of the site, Bellway would then look to start infrastructure works during Autumn 2016 with a view towards starting to build the first homes in Spring 2017, with occupation towards the end of 2017.”
A Taylor Wimpey spokesman added: “Together with our consortium partners we are delighted to have finalised the acquisition of the former Severalls Hospital site for an exciting new development of high-quality homes.
“We are currently awaiting a decision from the local authority on our latest joint planning application and, subject to planning approval, we are very much looking forward to starting work at this site as soon as possible.”
Properties will include a mixture of bungalows, houses and apartments, while 112 of them will be affordable homes.
Allotments will also be provided as part of the wider site under conditions already set by the borough council.
Work is already well underway on the nearby Camulos Academy primary school, which is due to open in September and primarily serve the new development.
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