Morrison Property Solutions has sold the residential interest in its #80 million Broadway Plaza scheme in Birmingham to CALA Homes (Midlands).
The buyer will build 114 up-market apartments at the mixed-use leisure scheme, on the site of the former Birmingham Children's Hospital at Five Ways, with prices ranging up to #350,000.
It is the first time CALA has developed homes on a mixed-use scheme of this size and, according to sales and marketing director Sue Parry, it will generate big commercial benefits for the community.
The deal leaves Morrison free to concentrate on retail and restaurant lettings at what is the biggest commercial leisure project on site in Birmingham, with 277,000 sq ft of leisure and retail space and 1,400 secure, underground parking spaces.
The scheme - including a 12-screen AMC cinema, a 20-lane Bowlplex and a #4 million Esporta health and fitness club, plus a range of bars and restaurants - will be open to the public from autumn this year. The apartments will be ready for moving in the following summer.
Roger Frith, development manager at Morrison Property Solutions, said: "With the leisure scheme 60 per cent let and the residential space sold, we will now be focusing on retail and restaurant lettings at the scheme.
"A number of residential developers expressed an interest in developing the residential section of the site. Broadway Plaza's position as the gateway to Broad Street proved a major selling point.
"CALA Homes is a first-class brand in the housing sector and a welcome addition to Broadway Plaza."
Ms Parry said: "We are delighted to be involved alongside Morrisons in such an exciting mixed-use scheme.
"As well as the benefits to the local residents, the commercial benefits to the local community will be huge.
"We take great pride in choosing the right locations for our customers, and Broadway Plaza will appeal to all - the development will hold the facilities, location and luxury that our customers would look for."
The apartments will be scattered around the scheme on the East and West Crescents, with some on the Francis Road frontage and others on the third and fourth floors of the Grade II-listed former hospital on Ladywood Middleway, close to Birmingham's Broad Street.
The one, two and three-bedroom apartments will range in size from
400 sq ft up to 1,400 sq ft, with prices ranging up to #350,000.