Sale of former London nursing home site to create new homes and £8m in investment for the NHS

NHS Property Services has completed the sale of the former St Olave’s House Nursing Home in Rotherhithe, to Peabody, one of London’s oldest and largest housing associations, for in excess of £8million.

All funds generated from the sale will be directly reinvested in the NHS estate.

The 0.3-hectare site currently features two vacant buildings – the former nursing home and a temporary building for a former ambulance centre.

The site, located on Lower Road near Canada Water, is surplus to the requirements of the NHS.

Dan Hotson, Senior Transaction Manager for NHS Property Services, said: “This disposal will generate vital funds for the NHS, while simultaneously delivering much needed housing for London on what is currently an unused site in a prime Southwark location.”

Richard Evans, New Business Director at Peabody, said: “Peabody has been at the heart of Southwark for almost 150 years, providing homes, services and support for our residents and the wider community. We want to extend our mission to as many people as possible.

“We’re excited about the opportunity to deliver affordable housing on this unused site, whilst providing significant income to be reinvested in the NHS. We look forward to working with our local partners and the community as we develop our plans.”

NHS Property Services has a remit to secure the best possible return on surplus NHS sites and sales can only take place once NHS commissioners declare that they are no longer needed.  Capital released from the sale of NHS Property Services’ surplus sites is reinvested into the NHS.

NHS Property Services appointed Jones Lang LaSalle to market the development site.