Esteem preferred bidder for £
Morgan Sindall plc
4 November 2009
Esteem appointed preferred bidder for £400 million
Building Schools for the Future PFI project
Morgan Sindall plc, the construction and regeneration group, today announces that Esteem, comprising Morgan Sindall Investments (MSIL), Robertson Capital Projects and the Sewell Group, has been appointed as preferred bidder by Hull City Council for their £400 million PFI Building Schools for the Future (BSF) programme.
The 25-year concession involves the delivery of 17 schools comprising seven newly built schools and major refurbishments to a further ten schools.
Morgan Sindall's construction business, Morgan Ashurst, is a key delivery partner on the project alongside Sewell Construction. The value of the project to Morgan Ashurst is approximately £200 million. Construction work will begin in February 2010 and is expected to complete in January 2014.
MSIL will invest equity and sub-debt of £2.5 million into the delivery of the first school and the establishment of the Local Education Partnership, with further investment expected throughout the duration of the programme. MSIL's equity stake in the project will be 26.66 per cent. Esteem will provide project and operational management and new project development services into the Local Education Partnership under a 10-year exclusive strategic partnering contract.
Esteem expects to reach financial close on the scheme in late January 2010.
Paul Smith, Chief Executive of Morgan Sindall plc said:
"This award demonstrates Morgan Sindall's continuing strength in the education sector and our ability to deliver projects that require integrated investment and construction capabilities.
"We look forward to working with our construction partners and Hull City Council to create exceptional, sustainable learning facilities for the people of Hull."
- Ends -
Editor's notes:
Morgan Sindall plc is a top UK construction and regeneration group which operates through five divisions of fit out, construction, infrastructure services, affordable housing and urban regeneration, which are supported by two specialist units of investments and professional services.
Morgan Sindall Investments (MSIL) provides project development and funding solutions through a one-stop service, allowing our partners in the public sector to implement sustainable change in order to improve long-term prospects and well-being of local communities.
Morgan Ashurst is a leading full-service construction business with more than 1,800 employees in the UK. Supported by a national network of local offices, the company works for private and public sector clients on projects from £50,000 to over £300 million. Morgan Ashurst's construction activities range from small works, repair and maintenance services to large-scale complex projects across the commercial, defence, education, healthcare, industrial, leisure, retail and transport sectors.
ENQUIRIES:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
Blythe Weigh Communications Tel: 020 7138 3204
Tim Blythe Mobile: 07816 924626
Paul Weigh Mobile: 07989 129658
This information is provided by RNS
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