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SULLY Hospital has been sold in a deal worth £3 million by the Cardiff and Vale NHS Trust to a property developer.
Galliard Holdings hopes to convert the Grade II listed building into 234 luxury apartments.
Nick Tucker Brown of Galliard Developments said: "This is the most exciting project that I have been involved with, and that includes the conversion of the Greater London Council building into 600 apartments.
"One-, two- and three-bedroom apartments will be available in the Sully project. The central administration block, which is single story, will be converted into around 40 bungalows.
"The location is absolutely fantastic with coastal views and direct access on to the coastal footpath. The development will have its own tennis courts and possibly a bowls square.
"Prices for the apartments will start at around £125,000.
"Sully Hospital is a very important post-modernist building - it is probably the best example in the whole country.
"We have commissioned a full team of professionals to work on a restoration plan. The Twentieth Century Society have been very cooperative in this aspect of the project."
Galliard has already completed the decommissioning of the incinerator at Sully Hospital, which was widely seen as an environmental hazard.
A spokesman for the Cardiff and Vale NHS Trust said: "The buildings are Grade II listed and will be retained in their present configuration as part of a development brief agreed with the Vale of Glamorgan planning committee.
"It has also been confirmed that the proceeds of the sale will be wholly re-invested into healthcare facilities in the Vale of Glamorgan."
Trust chief executive David Edwards, said: "I am pleased that the lengthy disposal process has been satisfactorily completed and an honourable use for this much-loved site has been secured."
Galliard Holding has submitted a planning application to build the luxury apartments to the Vale of Glamorgan Council, but it will not go before the planning committee until later this summer.
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