Sunnyside Estates has kicked off a £4.4 million development to transform the historic hospital into 35 affordable homes, with work scheduled to complete by summer 2021.
This will be followed by a second phase to deliver a further 59 units. All 94 homes will be earmarked for social rent.
The venture is a partnership between Tayside construction firm Pert-Bruce and Edinburgh-based developer FM Group on behalf of Hillcrest Homes.
Hillcrest chief executive Angela Linton said: “Sunnyside has a huge historical significance to the local area, and we’re delighted that the hospital building will be preserved for future generations as part of the wider development plans.
“As well as boosting Angus’ affordable housing provision, these 35 properties being developed for Hillcrest in the beautiful grounds of the estate will give families a modern, energy efficient place to call home.”
Sunnyside was founded in 1781 by Susan Carnegie as Montrose Lunatic Asylum, Infirmary and Dispensary.