The owner of Aberdeen’s deteriorating Woolmanhill Hospital has approached the city council with an unconventional proposal to convert the derelict A-listed building into housing for residents displaced by the city’s ongoing RAAC concrete crisis. The surprising offer, revealed through Freedom of Information requests by Aberdeen’s Press & Journal, represents an attempt to address two of Aberdeen’s most pressing property challenges simultaneously. However, the city council has apparently chosen not to pursue the idea.
The proposal
CAF Properties, controlled by developer Charlie Ferrari, made the approach in June 2025 through Lower Deeside Councillor Marie Boulton as an intermediary. The proposal centred on utilising existing planning permission to convert three of the four Woolmanhill Hospital buildings into 60 two-bedroom flats. Under the suggested arrangement, CAF Properties would undertake all construction costs in exchange for the council entering into a long-term lease agreement.
Aberdeen City Council officials expressed initial confusion about the proposal’s practicality. Internal correspondence revealed a “somewhat bemused response,” with officials questioning: “Not immediately understanding how this helps us with Raac… Presume they are offering to lease us units to use as social housing?”
A council spokesperson ultimately dismissed the proposal, stating: “An email was received in relation to Woolmanhill, however given the complexity and expected cost of developing the site it was not considered suitable for further investigation.”
The proposal emerges against the backdrop of Aberdeen’s declared housing emergency, officially recognized in September 2024. The crisis has been exacerbated by the discovery of reinforced autoclaved aerated concrete (RAAC) in approximately 500 homes in the Balnagask area of Torry.
Woolmanhill Hospital Background
The historic Woolmanhill Hospital complex has remained largely vacant for nearly a decade since NHS services relocated. CAF Properties, led by property developer Charlie Ferrari, acquired the site from NHS Grampian in 2019. Ferrari, who has been involved in Aberdeen property development for over two decades, initially planned a £10 million luxury hotel and residential development.
The original development scheme, approved in 2016, envisioned transforming the Simpson Pavilion into a 52-bedroom boutique hotel, with the Stephen Building becoming 27 serviced apartments and additional buildings converted into residential units. Glasgow-based hospitality firm G1 Group was designated as the intended operator.
However, these plans stalled during the COVID-19 pandemic in 2021, with the property owners stating they were “actively looking at various options to preserve this important piece of Aberdeen’s heritage while also ensuring its viability”. Since then, the building has continued to deteriorate, with local councillors expressing concerns about break-ins and general decay.
The Woolmanhill Hospital complex comprises four A-listed buildings designed by renowned Aberdeen architect Archibald Simpson, with the oldest dating to 1840. The neo-Classical granite construction represents significant architectural heritage for the city. The site includes the Victoria Pavilion (41,135 sq ft), Stephen Pavilion (23,466 sq ft), Simpson Pavilion (43,142 sq ft), Archive Block (8,439 sq ft), Gate House (466 sq ft), and Outhouse (1,565 sq ft), totaling 118,213 square feet.
Current planning permission remains in place for residential conversion, though the complexity and cost of developing a Grade A listed building present substantial challenges.
Torry RAAC crisis ongoing
At the same time as the offer to house RAAC residents was being made, the crisis was intensifying with homeowners in dispute with the council over their properties.
Many council tenants have been relocated to new homes elsewhere in the city, revealed by the Press & Journal to be damp-riddled and rot-filled flats. Meanwhile, some private homeowners remain in the largely abandoned community, refusing to relocate without proper compensation, as ACC begun plans to demolish the empty homes in the Balnagask community.
Financial Implications
While specific costs for the proposed Woolmanhill conversion were not disclosed, it would require significant investment in heritage building renovation. The original hotel development was estimated at £10 million in 2016. Current RAAC remediation costs demonstrate the scale of Aberdeen’s housing challenges, with roof replacement options for affected properties ranging from £20,000 for one-bedroom units to £44,000 for four-bedroom properties.
Marie Boulton told the Press & Journal: “said: “I’d like to think that we could find a use for that building and if it’s something that could work for the council in terms of some kind of housing, great.
“It’s certainly something that I think the council should seriously consider moving forward if we want to increase people living in the city centre.”
Mrs Boulton continued: “We know we’ve got a number of the tower blocks as well that are not in particularly good condition, so it could be a clever move.”
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She added that she “would love to see the building back in use” and that it could be a “multi-purpose area” including a museum too.
In response, Aberdeen City Council has reiterated ruling out the Raac housing idea.
A spokesperson told the P&J: “An email was received in relation to Woolmanhill, however given the complexity and expected cost of developing the site it was not considered suitable for further investigation.”
