Carillion joint venture achieves final close
14 December 2015
Carillion achieves financial close on the Midland Metropolitan Hospital Public Private Partnership project - £430 million of construction and support services, plus an equity investment of £13 million
A Carillion joint venture, The Hospital Company (Sandwell) Limited, has achieved financial close on the Midland Metropolitan Hospital Public Private Partnership project in Birmingham, following the announcement on 11 August 2015 that a Carillion joint venture had been selected by the Sandwell and West Birmingham Hospitals NHS Trust as the preferred bidder to deliver this project.
The new state-of-the-art hospital, which will have around 683 beds and 13 operating theatre suites, has been designed to meet the best international standards to make it truly patient focussed and to support the efficient delivery of high-quality clinical services and also the highest standards of sustainability. The hospital will also have a number of innovative design features, including a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors to create secure environment for patients and staff, and full separation of clinical activities and journeys from the public and non-clinical services.
Carillion will invest £13 million of equity in the project, which Carillion will build at a capital cost of £297 million. Construction will start in early 2016 and completion is scheduled for mid-2018, with the hospital opening in late 2018. Carillion will also deliver hard facilities management and life cycle maintenance that is expected to generate approximately £140 million of revenue over the 30-year life of the concession contract.
As a leading provider of apprenticeships and training, Carillion will use this project as a further opportunity to provide training and apprenticeship opportunities for local people as well as maximising the use of local suppliers.
Commenting, Carillion Chief Executive, Richard Howson, said: "We are delighted to have achieved financial close on this important new hospital. Carillion has delivered over 60 Public Private Partnership projects including more than 20 healthcare projects, making us a global leader in the PPP market. We will use this experience and our commitment to working closely with the Sandwell and West Birmingham Hospitals NHS Trust to deliver a state-of-the-art hospital that will support the Trust in delivering significant improvements in healthcare services for the people of Sandwell and West Birmingham."
The Hospital Company (Sandwell) Limited is a joint venture between Carillion (50 per cent), Richardsons Capital (40 per cent) and Infrastructure UK (10 per cent)
Notes to Editors
Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2014 of some £4.1 billion, employs around 46,000 people and operates across the UK, in the Middle East and Canada.
The Group has four business segments:
Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.
Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.
Middle East construction services - this includes building and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.
This and other Carillion news releases can be found at www.carillionplc.com
For more information
John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson +44 (0) 207 2513801
This information is provided by RNS
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