Acquisition by HICL of and Investment in the Birmingham New Hospitals PFI Project for £34.6m
HICL Infrastructure Company Limited (HICL or the Company, and together with its subsidiaries the Group), the listed infrastructure investment company, is pleased to announce that the Group has acquired a 30% equity and loan note interest (the Interest) in the Birmingham New Hospitals PFI Project (the Project) from Royal Bank Project Investments Limited.
The Project is a 40 year concession to design, construct, finance and maintain a new acute hospital and six new mental health facilities in Birmingham for the University Birmingham Hospitals NHS Foundation Trust and the Birmingham and Solihull Mental Health NHS Trust (the Trusts) respectively.
The new acute hospital and mental health facilities were built by a joint-venture between Balfour Beatty Construction and Hayden Young under a £553m fixed-price construction contract. The new buildings have been built in phases over 5 years. The mental health facilities were handed over in 2008 and provide for 235 beds across 6 new psychiatric facilities. The acute hospital was substantially completed and handed over in September 2011, with the remaining works due to be finished in August 2012. The hospital provides for 1,213 inpatient beds and 30 operating theatres. Balfour Beatty Workplace is providing hard facilities management services to the Project.
The total consideration paid by the Group is £34.6m, which is in line with the current valuations of similar U.K. PFI projects in the Group’s portfolio.
James O’Halloran, Investment Director, Infrastructure, InfraRed Capital Partners Limited (HICL’s Investment Adviser) said:
“We are delighted to acquire this investment in this Project in which we have been involved since contract signing in 2006. The acute hospital delivered by the Project is one of the largest single hospitals in Europe and we look forward to working with all stakeholders to ensure that the final phase of construction is completed successfully and the Project continues to perform well.”