The original OJEU notice listed the scheme as worth between £220m and £550m.
The contract will deliver a 375,000sq ft mixed-use development, including new hospital facilities for Watford and south-west Hertfordshire; up to 650 homes, 35% of which will be affordable housing; a 37,500sq ft office, which will be pre-let to West Hertfordshire Health Trust and a large multi-storey car park.
Dorothy Thornhill, Elected Mayor of Watford, said: “The Health Campus is a once in a lifetime opportunity. It will deliver significant benefits to the town and gives a huge boost to our local economy at a time when other areas of the country are seeing reductions to public investment and services.
“There is still a lot to be done but I am delighted at the prospect of working with Kier on its exciting proposals and getting the best possible results for Watford and our residents.”
Jan Filochowski, Chief Executive of West Hertfordshire Hospitals NHS Trust said: “The land around the hospital and the slope of the site has been challenging when trying to piece together the Health Campus ‘jigsaw’.
“The scheme allows parts of the hospital to ‘decant’, whilst other parts are built. It will transform the hospital facilities and site, creating green open spaces, tranquil water frontage and welcoming public spaces.
“Emergency and normal access to the site will be dramatically improved. At the end of the works our patients, staff and the local community are set to have fantastic new and improved facilities.”
Nigel Turner, Kier Property’s MD, added: “We have worked closely with the Health Campus partners to understand their vision and aspirations for the Health Campus and the area overall.
“We believe our proposal will deliver the transformation that the partnership is looking for and we are now very excited to get started.
“Our masterplan for the Health Campus is not set in stone and we are looking forward to getting out and about in Watford to share our proposals and to engage with the local community on our plans.”
Kier will be working with the Health Campus partnership to complete the financial and legal aspects of the agreement by December.