Part of the former King Edward VII hospital site could be re-awakened as a new care home, with the States going into partnership with CI Healthcare.
The proposed £5m+ redevelopment project will be privately funded and will deliver, subject to planning permission, 33 care home beds.
CI Healthcare will take the lead on the redevelopment and said a new facility could be ready for admissions from the second half of 2027.
It already owns and manages Coolderry, Browhill, Green Oaks, and Chateau du Village nursing and residential homes.
Nick Trott, Managing Director and Owner of CI Healthcare, said the King Edward site has lots of potential.

“CI Healthcare is delighted to partner with the States of Guernsey to reimagine the redundant King Edward VII hospital. We have reached an agreement in principle to redevelop this historic site which has a long tradition of providing care to the Guernsey community. The first phase of the development will provide 33 new care home places by the end of 2027. This redevelopment will make a meaningful contribution to meeting the forecast 132 additional care home places required by 2030.
“We are excited to be making this substantial investment which showcases our commitment to Guernsey and will deliver a world class care facility on this site. We would like to acknowledge the collaboration and efforts of the Government in working with us to develop a scheme which the entire community can be proud of, and which residents and their families will benefit from.”
Policy & Resources said “substantial progress” has already been made on plans to “potentially redevelop” the site, as part of the first phase of work.
P&R also said the plans for the KEVII site feeds into longer term plans to reclassify it and the neighbouring Câstel Hospital sites as a ‘Care Village’.
“The King Edward VII site is a prime location and it makes total sense to use it to help meet the demand for long term care that we know exists now and will in the years ahead,” said Deputy Bob Murray, P&R’s lead on property matters.
“We think this is an excellent example of the States working with a private provider to facilitate the kind of investment needed, utilising vacant taxpayer-owned land without requiring any additional financial commitment by the public. This is an exciting development and we will continue working with CI Healthcare on its plans.”
Guernsey’s has long had a growing ageing demographic, with the number of care home beds available already far below demand.
Last year, the island was warned that an acute shortage of care beds was looming.
Bed blocking at the Princess Elizabeth Hospital was highlighted as a problem in a report published earlier this year, with some patients unable to go into a residential home or into nursing care because there simply isn’t anywhere available for them.
The number of people living in Guernsey who are aged 85+ are expected to increase by 128% over the next 30 years – with more care beds needed to help them, warned Deputy Peter Roffey.
“My Committee is delighted at the news that the KEVII site is to be used for bed based social care,” said the President of the Committee for Employment & Social Security.

“ESS has been flagging up the need to greatly expand this sort of provision throughout this States term. The cohort most likely to require this sort of care are islanders aged 85+ and numbers in this category are projected to increase by 128% over the next 30 years. So, even if the States does more to help elderly islanders to remain at home, the demand for both residential and nursing care provision is bound to go up significantly. In this context, this is the ideal use of the KEVII site.”
Deputy Al Brouard, President of the Committee for Health & Social Care agreed that the plans for the KEVII site are very promising.
“The changing demographic in our community has significant implications for our health and social care system and as such the Committee for HSC have been consistently advocating the need for fit-for-purpose long term care options that meet the needs of our ageing population. The Committee for HSC is therefore delighted at the news of the progression of this much-needed development, as it will provide a positive impact in seeking to address the demand for long-term care provision in Guernsey.”