A trust in the West Midlands has signed a deal to transfer its surplus land to the Homes and Communities Agency.

Sandwell and West Birmingham Hospitals Trust has agreed to sell land on its City Hospital site to the HCA – a quango that funds affordable housing across England.

Both the trust and the HCA have refused to confirm the value of the deal, but a finance report published on 3 August by the trust showed a forecast land sale receipt of £10m for August.

Around 750 homes are expected to be developed on the site, which will be freed up once acute services are moved from City Hospital to the new Midland Metropolitan Hospital. The trust also plans to move acute services from Sandwell General Hospital to the new hospital by spring 2019.

HSJ understands that the HCA still needs to go through the planning application process and construction is not expected to begin until after the trust has moved its services in 2019.

A treatment centre at City Hospital has been retained by the trust, which will be used to provide outpatient services and day case surgery.

In a statement to HSJ, the trust said it would lease the land back from the HCA until all acute services are moved to Midland Metropolitan Hospital so “there are no conflicting demands upon [the site]”.

Chief executive Toby Lewis said: “This is a great moment which will significantly affect the future of the trust. The Birmingham and Midland Eye Centre, Sheldon Block and Birmingham Treatment Centre are a fixed part of our future and the design of the Midland Met relies heavily on continued and even greater use of these facilities. By securing the land sale earlier than we anticipated, we will be able to ensure our patients get the first class treatment they deserve.”

Trust estates director Alan Kenny added: “This is welcome news for both patients and staff as it gives us the ability to provide a better environment and build on the investment that has begun in the trust’s estate to ensure the delivery of 21st century facilities and equipment.”