Sunnyside Estates, a joint venture between local firm Pert Bruce Construction and Edinburgh-based developer FM Group, will convert the Sunnyside Royal Hospital and its 64-acre estate into a combination of luxury apartments and family homes.
The project is expected to create 50 jobs, while developers anticipate “extremely high demand” for the properties.
The former hospital was founded by Susan Carnegie in 1781 as the Montrose Lunatic Asylum, Infirmary & Dispensary.
Sunnyside’s most famous patients include Charles Altamont Doyle, father of author Arthur Conan Doyle, who struggled with epilepsy, and iconic Shetland sculptor Adam Christie.
The hospital closed in December 2011 and was bought from NHS Tayside in 2016 by Sunnyside Estates.
Robert Croll from FM Group said: “We are very proud to be bringing luxury apartments in this historic listed building onto the market as well as family homes in the estate grounds.
“Given the uniqueness of the estate it will undoubtedly be in extremely high demand, delivering a desirable and sustainable place for those living here.”
Craig Bruce of Pert Bruce Construction added: "We worked closely with the local community and planners to develop proposals that maintain the history and heritage of the former hospital and natural environment along with consideration to both existing and new communities. Our desire to create a benefit for the local area, and this together with sustaining and creating local jobs has been foremost in our vision for Sunnyside."