The project involves the department handing over Catherine Quirke House and the corner shop in Newgate Street to developers Katesby Property Group and in return having new facilities built on the site for their use.
The former Sandringham Hotel in Gloucester Street is currently being demolished to make way for a major six-story development which will include 82 one- and two-bedroom flats, a retail unit, and bar/restaurant.
As part of the deal with Health, the developers will also include a new medical area on the ground floor with three clinic rooms, a nurse’s room and waiting area, as well as five one-bedroom flats within the development for nursing staff.
Health’s estates manager Mike Le Fevre said Catherine Quirke House, used formerly by the hospital’s catering administration staff, was in a poor condition and had been unused for some time.