The new investment is a 50% interest in the Pontefract and Pinderfields Hospitals PFI Project (P&P) and the incremental stakes are additional interests in the Oxford John Radcliffe (OJR) and Queen Alexandra (QAH) Hospitals; all three of these interests were acquired from Royal Bank Project Investments Limited. The incremental stakes acquired in OJR and QAH take the HICL Group’s ownership in each of these projects to 100%. The Group has also acquired a further, small interest in the Medium Support Helicopter Aircrew Training Facility from Serco Limited.
The total consideration paid by the HICL Group for these investments was £32.8m, is in line with the current valuation of similar U.K. PFI projects in the HICL Group’s portfolio and was funded from the HICL Group’s existing resources.
P&P involves the financing, design and construction and subsequent operation of two hospital facilities for the Mid Yorkshire NHS Trust, delivering a combined total of 774 beds. Construction of the new hospital facilities on the two sites was substantially completed in January 2011, with construction works undertaken by subsidiaries of Balfour Beatty plc. Final construction completion is expected to take place in October 2011. Services are being delivered by Balfour Beatty Workplace Limited.
The acquisition of this investment, which is still in its construction phase, takes the number of infrastructure investments in the HICL Group’s portfolio to forty three and the number of assets currently in construction to three.