The hospital, in Hillside near Montrose, has been acquired by Montrose based Pert Bruce Construction Ltd and Edinburgh based FM Group in a seven figure deal.

The mixed-use development will comprise housing, retail, commercial and social housing, with the construction and refurbishment project representing a multi-million pound investment in the local area.

Pert-Bruce, director Craig Bruce, said: “The negotiations with NHS were considerable as NHS Tayside were keen to ensure they achieved the best deal in terms of value for money and financially for the site while securing the long term future of the Class B & C heritage building stock. We feel that our strong local ties to the area set us apart from the rival bidders, and demonstrated our desire to create a benefit for the local area and secure local jobs for both Montrose and the wider community; something which was unique to our bid.”

Sunnyside Estate will be the joint venture company responsible for the transformation of the old hospital site back into a prominent feature within the Hillside & Montrose communities.

David Stewart, director of Sunnyside Estate, said: “‘Sunnyside’ brings together an idyllic setting, history and a uniqueness seldom found in other sites. Our goal is to create a development of distinction that will blend into the mature natural environment and create a legacy for the area, as the loss of the hospital represented a blow to North Angus and we hope to bring this back, by providing a multi-use site that gives both development and open area to add to the local community.”

Rory Ballantyne, director of Ballantynes, who acted on behalf on NHS Tayside in the sale of Sunnyside Royal Hospital said: “Ballantynes are delighted to have completed the sale of a very complex and substantial site. NHS Tayside are pleased that a local firm have taken on the project and their commitment to the regeneration of Sunnyside Royal Hospital was a key driver in the sale process. We look forward to seeing the site transform under Sunnyside Estate.”

Sunnyside Estate now plans to move forward with the current outline plan approved for the site to consult with the local community groups and obtain planning permission to allow construction works to commence.