Trafford Healthcare NHS Trust has completed the sale of Bowdon’s Victorian hospital.
The proceeds will go towards Altrincham’s £10m new hospital.
St Anne’s Hospital, which is on prime residential land and boasts three Victorian buildings of significant architectural interest, has been vacant since 2004.
The completion of the sale follows the granting of planning permission for The PJ Livesey Group to convert the site into 22 new homes. The original buildings are being converted into seven apartments and 12 houses.
Three new-build properties will be built in the grounds following the demolition of 20th-century buildings on the site.
The new hospital on Railway Street in the town centre - a project that was approved by NHS North West last month - will replace Altrincham General.
The Trust wants to create a new, more modern and accessible building providing all the same services but in a significantly enhanced and patient-friendly environment.
Tristram Reynolds, director of estates at the Trust, said: “The PJ Livesey Group has a strong reputation for the sympathetic redevelopment of historic buildings and we are delighted that the sale of St Anne’s to them has now been completed.”
James Woodmansee, development director with PJ Livesey, said they hoped to complete the project in 18 months.
"Work can now begin in earnest to bring these lovely buildings back into use. There is huge interest in what is being done here and an obvious demand for the type of properties that will be created."