HICL Infrastructure is buying a 50% stake in the Southmead Hospital PFI project from Carillion for £87.8m. £48.7m of this number relates to a future loan note subscription obligation, which will be paid by the Group in September 2015.
The Project is a £430m, 35 year concession to design, build, finance, operate and maintain an 800-bed acute hospital on a single site at Southmead in North Bristol, on behalf of the North Bristol NHS Trust. Construction is being undertaken by Carillion Construction Limited in two distinct phases. The first phase, comprising the construction of a 102,000 sqm new acute hospital “Brunel” building, was completed in March 2014, with the hospital now open for use and fully operational since May 2014. The second phase, which includes the demolition of the old hospital site, is due for completion in 2016. The provision of hard facilities management services during the operational phase of the Project is subcontracted to Carillion Services Limited under a concession life contract.
They used their revolving credit facility to fund this. Net of proceeds from a recent disposal of the Fife Schools project, HICL says it has a current funding requirement of approximately £47m.
HICL takes stake in Southmead hospital PFI