The former St George’s hospital site in Hornchurch, east London, was sold by Savills’ Chelmsford development team on behalf of NHS Property Services.
The transaction was the largest single capital receipt for a surplus site achieved by NHS Property Services since it was established in 2013.
The funds raised will be reinvested in the NHS estate.
NHS Property Services secured outline permission in summer 2017 for 290 new homes, with the plans including the provision of 15% affordable housing.
Part of the 11.7-hectare site has been retained for a potential new health facility (1.6 hectares).
"This sale is a great example of how we help the NHS by using our expertise to unlock potential and achieve best value for surplus sites,” said John Westwood, director of asset management at NHS Property Services.
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Peter Knight, managing director at Bellway Homes’ Thames Gateway division, said the site – which had lain derelict for five years – provided it with an excellent plot to build new homes in Hornchurch.
"Where there is demand for new homes, Bellway is keen to invest.
“We are excited to have been able to purchase this site, generating capital for the NHS, while also contributing much-needed homes in the area at an exciting time, when investment is being given to the nearest town of Romford, and the introduction of Crossrail.
"We will deliver a scheme here that reflects the local area and bring an empty site back into use for the wider community."
Dan Hotson, senior transaction manager at NHS Property Services, added: "Not only has this sale generated millions of pounds for reinvestment, it means an empty site can be brought back into use as much-needed new homes in London.
“We will continue to work with Bellway as plans are considered for the potential new health facility on the adjoining plot."