London hospital site sold for housing
January 23, 2019
In one of the biggest Ontario residential land deals so far in 2019, the Ontario government has sold the site of the former London Psychiatric Hospital for redevelopment.
London-based Old Oak Properties paid $17 million for the 160-acre parcel near the centre of the city. The City of London plans for the site to serve as a transit hub and as a location for residential-heavy mixed-use real estate development. The plan forecasts a 15-year build-out toward a projected total population of 5,800. Much of the property is apparently being eyed for multi-family housing.
“Our government is delivering on our commitment to implement a more efficient and responsible process for selling buildings and property no longer needed to deliver government programs,” Bill Walker, Ontario’s Minister of Government and Consumer Services, said in a statement. “This sale demonstrates how reducing red tape is helping to make life better for the people of Ontario by saving millions of dollars in maintenance costs and generating significant revenue for the province.”
The sale will save the government $778,074 annually in maintenance and liability costs and generate more than $15 million in net revenue for the province, the minister explained.
The former hospital is among 243 properties and approximately 14,600 acres owned by the province that the government is selling to generate from $105 to $135 million in net revenue over four years.