A DEAL has been made for the sale of the current Royal Hospital for Sick Children in Edinburgh.

NHS Lothian has come to an agreement with Liverpool-based property developers the Downing Group for the purchase of the Sick Kids hospital when it relocate.

A new purpose-built hospital, costing £150 million, is to replace the old hospital in 2018.

Overseeing the sale, Jim Crombie, Deputy Chief Executive, NHS Lothian said: "It has been a competitive process but the prospective purchaser showed keen interest in the important legacy for the site through their proposed mixed use development which will also provide significant capital support to the new hospital.

"Downing is still formulating their detailed plans and we anticipate further community engagement will take place as the developer prepares their planning applications."

Jane Ferguson, Director, Edinburgh and the Lothians Health Foundation added: "On behalf of the trustees of the Edinburgh and Lothians Health Foundation, I am delighted that the process to sell the buildings that make up the Royal Hospital for Sick Children at Sciennes has reached its conclusion."

The Royal Hospital for Sick Children spans more than four acres in the Marchmont, Meadows and Bruntsfield conservation area and includes a range of listed properties.

Designed by George Washington Browne, the building was opened in 1895 by Princess Beatrice.

Ownership is split over NHS Lothian and Edinburgh and the Lothians Health Foundation charity.

The property was put up for sale in November 2016 and generated 21 formal bids at the start of this year.

Six bidders were then invited to provide additional clarifications before the Downing Groups was selected as preferred bidder.

A local group, called the Marchmont and Sciennes Development Trust (MSDT), also formed a response to try and bring the site into community ownership.

A spokesman reportedly said: "This application was considered by many as an 'acid test' for the new urban right-to-buy laws and we feel very disappointed, as will many people in the community around the Sick Kids, that we did not get the chance to show how it would work."

Jacquie Campbell, Chief Officer for Acute Services, NHS Lothian said: "The decision to move the services from the current site and dispose of the site was not an easy one to make.

"The legacy of the Royal Hospital for Sick Kids dates back to 1863 and since 1895 the hospital at Sciennes Road has been home to thousands of children and their families in the building many have grown to call ‘the sick kids’.

"Although the site has a developer lined up to take ownership of the site, patients and their families can rest assured that no changes will be made to the current facilities until they are set to move to the their new location in the £150m Royal Hospital for Children and Young People and Department of Clinical Neurosciences, Little France next year."

Ian Harrison, development and acquisition manager at Downing Group, said: "We’re pleased to confirm that we have reached a purchase agreement with NHS Lothian following a competitive process. The hospital is still in operation at the site and will remain in place until their move to the new hospital next year."