Housebuilder SevenHomes received the go-ahead from Redditch Borough Council.
The former NHS site off Woodrow Drive, which was previously earmarked as surplus land, will be transformed and 92 high quality one bedroom apartments and two, three and four bedroom homes, will be developed.
Wire Croft will also provide around £700,000 in financial contributions towards education, sporting pitch improvements, highways, and public transport, as well as £50,000 towards further town centre enhancements.
-- Advertisement --
The development of the 5.85 acre site will enable the capital raised to be injected back into the NHS to help fund much needed services.
Abdul Ali, Executive Director and head of office for SevenHomes, said: "The existing buildings have remained unoccupied for over a decade, so we are delighted to have received the green light from committee to breathe new life into this currently vacant site.
"With its proximity to the hospital and connectivity to the main town centre and Birmingham city centre, the site offers a fantastic location for good quality, modern family homes for local residents. Crucially, the development will not only enhance the local area and support housing demand but will also positively contribute towards improving facilities at Alexandra Hospital through the capital raised."
