The former Royal Hospital site is to become a residential development with starter homes
The Homes & Communities Agency (HCA) has acquired the former Royal Hospital site in Wolverhampton from Tesco.
The 12.5 acres will be used mainly for residential development including starter homes and a possible new campus for Wolverhampton college.
The site has lain dormant since Tesco decided not to proceed with a new retail development.
City of Wolverhampton council deputy leader and cabinet member for city assets councillor Peter Bilson welcomed the news and the development of a new gateway to the city.
He added that the city had over £868m of investment in projects in the pipeline as the regeneration of Wolverhampton continues.
Karl Tupling, the HCA’s executive director for the Midlands, said the association believed development of the Royal Hospital site will create an “inviting” approach to the city centre.
The HCA worked with the Birmingham office of property agents, JLL, on the acquisition of the site.