FINANCE Peterborough and Stamford Hospitals Foundation Trust has completed of the sale of the former Peterborough District Hospital site, netting the trust £7.4m, it has announced.

A trust statement said the NHS will receive £7.8m from the sale of the 23-acre site while the trust will receive £7.4m 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.

The site was vacated in December 2010, once the move to the ill-fated City Hospital building at Bretton Gate, funded by a disastrous private finance initiative deal, was complete.

The site and associated buildings have been sold to developer Lands Improvement Holdings which plans to build up to 350 new homes on the site and a new primary school.

Interim chief executive Peter Reading 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.”