HUNDREDS of homes look set to be built on Colchester's historic Essex County Hospital site, it has emerged.

The land has been sold to housebuilder Galliford Try and a subsidiary of it, Linden Homes.

The sale was revealed in papers at a board of Colchester hospital trust's board of executives yesterday.

The sale is subject to the housebuilder getting planning permission the develop the site in Lexden Road.

Concerns had previously been raised the hospital building, dating back to 1820, could be converted into a supermarket or a high-rise residential block.

Developer Ross Carroll also said last year he wanted to build a 100-bed care home, 40 two-bed retirement apartments and a unit for care services on the site.

He was among seven developers who submitted bids to Colchester Hospital University NHS Foundation Trust.

It accepted offers in excess of £6million for the site which is expected could take about 200 homes.

Mr Carroll said some other developers hope to build more than 200 homes on the site.

Services at the hospital have gradually been transferred to Colchester General Hospital and the nearby primary care centre before it closes completely.

The board meeting also heard from the trust's new chairman who said specialisms that either Colchester or its partner hospital in Ipswich could offer, are still "to play for".

Nick Hulme, chief executive, and David White chairman, were appointed to Colchester last week after Alan Rose and Frank Sims, chairman and chief executive respectively, announced they were leaving.

Mr Hulme and Mr White will continue their roles as chief executive and chairman at Ipswich under the merger.

The move followed a series of problems for Colchester's hospital trust which last month was declared "clinically and financially unsustainable".

Mr Hulme confirmed yesterday services at the two trusts – with a combined £75million deficit – will merge but said it was too early to say which ones.

Speaking at the pair's first meeting of Colchester's board of directors, Mr White also paid tribute to Mr Rose and Mr Sims.

He said: “It is to both their credit that to accelerate the partnership they have stepped aside.

“Alan has handled himself with tremendous personal integrity.

“Improvements made were not deep or fast enough but under his tenure things were on the up and that was also the case with Frank Sims as chief executive.

“There are a lot of positive signs. What we collectively felt though was given the view of regulators, by having a single organisation management at the top that will hopefully accelerate closer working between both organisations.”

Mr White also revealed external advisors, funded by the Department for Health, had been brought in to suggest to Ipswich’s hospital board how it could work with Colchester.

Colchester’s High Steward Sir Bob Russell asked the pair what had “gone wrong” in the last year.

He referred to the secretary of state for health’s positive comments about the hospital’s leadership, after he visited last February and April.

Sir Bob added: “The leadership must show backing to staff who have done nothing wrong.”

Yesterday’s meeting of the board of directors also revealed that in April - the first month of the financial year –the trust already spent £1.1million more than it expected.

Blame was laid at the door of cancelled ops during the junior doctors’ strike and fines for not meeting other treatment targets.

Colchester’s deficit is on course to be about £46million come March 2017.