Supermarket giant set to open brand new store in abandoned psychiatric hospital
The supermarket giant could soon be opening a brand new store.

A major supermarket chain is set to redevelop part of a long-disused psychiatric hospital site in East London, transforming it into a brand-new store. The retailer has reportedly secured a deal to take over the former Thorpe Coombe Hospital site in Walthamstow, a location that has stood largely empty since its closure several years ago. Aldi has signed a mortgage agreement to take over the site with the North East London NHS Foundation Trust, from whom it acquired the land, according to documents seen by City AM.
It is understood that the supermarket will be built on part of the existing land and won't replace the original historic building. Development is expected to focus on underused areas of the site, including sections previously designated for parking.
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According to the news outlet, the supermarket chain declined to comment on its plans for the site or the terms of the mortgage arrangement, but planning documents have revealed it has proposed opening a new 'foodstore' on the land.
Originally, the land was not a hospital at all but a private estate centred around a grand villa known as North Bank. This 18th-century house was home to Octavius Wigram, a prominent businessman and ship owner. He was a member of Lloyds and Governor of the Royal Exchange Assurance Corporation.
Over time, the mansion passed through a number of residents before eventually being repurposed.
The property was later acquired by local authorities. The hospital officially opened in 1934 as a maternity unit, providing around 70 beds and serving families across the area.
It became part of the National Health Service when the NHS was established in 1948. Over the next few decades, thousands of babies were born here.
However, it ceased maternitiy facilities in 1973. The site was repurposed multiple times first as accommodation for nurses, then as a specialist centre for patients with Alzheimer’s disease, and most recently as a psychiatric hospital focusing on mental health care.
The hospital closed in 2017. Parts of the site were subsequently demolished and a new, purpose-built health facility opened nearby in 2019 to continue providing care in the area.
The 18th-century house and neighbouring buildings have remained unused and fenced off.