The Midland Metropolitan Hospital PF2 project reached financial close on December 11, 2015.
The project involves the design, build, finance and maintenance of a new inpatient and acute treatment hospital on a brownfield site in Smethwick, the West Midlands, under a 30-year concession contract.
The completion of construction is anticipated to happen in Autumn 2018, by which time the new facility will house 670 beds, 15 operating theatre suites and modern diagnostic equipment. The hospital will replace the existing emergency care facilities at City Hospital whilst Sandwell A&E will become an urgent care centre.
The PF2 project will be funded by equity from Carillion, Richardsons Capital and Infrastructure UK, alongside £216 million of senior debt. £109 million of the senior debt will be provided by Credit Agricole, KfW and SMBC whilst the remaining £107 million will be provided by EIB, from the European Fund for Strategic Investments.
Operis was pleased to provide an audit of the financial model representing the transaction which included a review of the model’s tax and accounting treatments.