3rd Jul 2007 07:01
Balfour Beatty PLC03 July 2007 3 July 2007 BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR THE £311 MILLION PPP PINDERFIELDS AND PONTEFRACT HOSPITALS DEVELOPMENT PROJECT ========================================================================== Balfour Beatty, the international engineering, construction, services andinvestment group, announces that its PPP healthcare vehicle, Consort Healthcare,reached financial close for the Mid Yorkshire Hospitals NHS Trust's Pinderfieldsand Pontefract Hospitals Development PPP Project on Thursday 28 June. Theproject has a capital value of approximately £311 million. The 35-year concession is central to the reconfiguration of health services inthe area. It will deliver a new acute inpatient hospital in Wakefield on theexisting Pinderfields Hospital site and a new Diagnostic and Treatment Centre inPontefract. Balfour Beatty will invest some £15 million of equity in the project. BalfourBeatty Group companies will be responsible for all of the construction, buildingservices and physical facilities management. Commenting on the financial close of the project, Balfour Beatty ChiefExecutive, Ian Tyler, said: "We are delighted to be in a position to deliver the largest PPP hospitaldevelopment in Yorkshire. When complete, the project will enable thetransformation of hospital services across Wakefield and Pontefract and theoptimisation of services at Dewsbury District Hospital to achieve the Trust'sambitions of high-quality patient care. Balfour Beatty is bringing to the taskmany decades of experience in working as a key contractor in the healthcaresector and its expertise in planning, constructing and operating other large PPPhospitals." Sir Hugh Sykes, Chairman of The Mid Yorkshire Hospitals NHS Trust, said: "This is wonderful news for everyone and we are delighted that our new hospitalsare now very much a reality. This development represents the single largestinvestment in healthcare in the Wakefield district since the NHS was set up in1948. "Our patients will be able to experience first-class care, in first-classfacilities which have been carefully designed around the needs of patients,visitors, carers and staff and will be modern, welcoming and accessible foreveryone." The concession company, Consort Healthcare (Mid Yorkshire), is a joint venturebetween Balfour Beatty and the Royal Bank of Scotland. The construction workwill be carried out by Balfour Beatty Construction and Haden Young (the buildingservices arm of the Balfour Beatty Group). Facilities management for all estatesand facilities services (including catering, cleaning, portering, security,linen and laundry) will be provided by Haden Building Management, anotherBalfour Beatty subsidiary, under an arrangement that could yield over £400million of long-term service revenue - the largest healthcare services contractsecured to date by the company. It is expected that the new Pontefract Hospital will open in 2009 and that thenew Pinderfields Hospital will open in 2010, although some facilities will beopened in advance of these dates. Consort Healthcare is now the PPP concession company for nine major hospitalsand has a committed equity investment of £123 million in the sector. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Balfour Beatty is a leader in the UK PPP market with approximately £350 million committed investment in 24 operational projects and a further six at preferred bidder stage. 2. Balfour Beatty's existing PPP hospital schemes are as follows: - £90 million Durham Hospital (opened 2001) - £220 million Edinburgh Royal Infirmary (opened 2003) - £280 million University College London Hospital (Phase 1 opened 2005) - £116 million Royal Blackburn Hospital (opened 2006) - £553 million Birmingham New Hospitals (under construction; due to open 2011) - £120 million Salford Hospital (preferred bidder) - £60 million Tameside Hospital (preferred bidder) - £152 million Fife Hospital (preferred bidder). 3. Balfour Beatty is the construction partner to Canmore Partnership Ltd in the PPP concession for the new Victoria and Stobhill Hospitals in Glasgow. This project, which began in August 2006, involves some £180 million of design and construction work and is due for completion in spring 2009. In Glasgow, Balfour Beatty is also building the new mental health secure unit at Stobhill and the new Beatson Institute cancer research facility at Garscube. 4. Balfour Beatty is a world-class engineering, construction and services group, well positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, long-term income. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP/PFI and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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