Lambeth Hospital’s six acre site has been bought by developers who plan to build hundreds of new rental homes, writes Tom Appleby…
Investment service Legal & General (L&G) revealed on Wednesday that it has exchanged contracts with the NHS to purchase the plot between Clapham, Stockwell and Brixton.
The scheme will provide a £350 million Build to Rent neighbourhood of approximately seven hundred new homes. These will include both private and affordable housing, subject to planning.
The finished neighbourhood is expected to include shared working spaces, a residents’ lounge and a gym. The project is also expected to have an all electric design, with green spaces and improved travel connections.
The site has been acquired by L&G in partnership with pension investor PGGM and pension scheme Nest. The investors intend to use long-term pension capital to deliver high-quality, sustainable rental homes which, in turn, will help tackle London’s housing shortfall.
The funds from the sale are then expected to be reinvested by the NHS into modern healthcare facilities.
The proceeds, in particular, will be used to support mental health services at the New Douglas Bennett House at Denmark Hill, a purpose-built home for services currently at Lambeth Hospital.
A statement published by the South London and Maudsley NHS Foundation Trust said the redevelopment of New Douglas Bennett House had made ‘significant progress’ despite previous delays, and confirmed that the first moves into the building are expected at the end of this summer, with services remaining at Lambeth Hospital in the meantime.
Jane Bailey, the trust’s chair, said: “This is incredibly good news which is the result of many years of hard work and support from our staff, patients and their carers.
“This opportunity will help us transform how we deliver care in the state-of-the-art hospital, New Douglas Bennett House, that will be opening later this year.
“This provides much needed local investment into NHS mental health services alongside the creation of 700 new homes and employment opportunities for our local community.”
Ade Odunlade, interim chief executive officer, added: “We are delighted to have reached this positive agreement with L&G, which directly supports our mission to improve mental health services and provide modern, therapeutic spaces for the residents of South London.
“This partnership will also bring wider investment into Lambeth, delivering real benefits for the local community. We are pleased to be working with a partner that shares our commitment to social impact, local opportunity, and long-term stewardship.”
Planning permission for the redevelopment of the Lambeth Hospital site was approved in December 2021.
Some minor amendments are expected to be made to the current plans prior to completion.
