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Financial Close Achieved on New Royal Liverpool University Hospital Project

Financial Close Achieved on New Royal Liverpool University Hospital Project

Following Carillion’s announcement on 2 May 2013 that it had been selected as the preferred bidder for the £335 million Royal Liverpool University Hospital project, Carillion announced on 13th December that it has achieved financial close on this project.

The new hospital, designed by NBBJ/HKS for the Royal Liverpool and Broadgreen University Hospitals NHS Trust, will be the largest all single-bed hospital in the country.

Carillion will invest some £15.5 million of equity in the project, alongside Scottish Widows Investment Partnership who will invest a similar amount, and expects to generate approximately £200 million of revenue from its investment over the 30-year life of the concession contract.

Carillion will also build the new hospital at a capital cost of some £335 million and deliver non-clinical support services that are expected to be worth approximately £100 million over the concession period.

Work on site is due to start early in 2014, with completion scheduled for 2017.

The new hospital will be built next to the existing hospital, which will be demolished once services have been transferred. It will be the largest all single-bed hospital in the country with 646 beds, including a 40-bed Critical Care Unit, 18 operating theatres and one of the largest emergency departments in the North West.

David Lewis, principal at lead architect NBBJ said: “The new Royal has been designed with patient and staff experience in mind at all times, in order to achieve clinical excellence and a positive healing and working environment. The design has a strong civic presence and will act as a landmark and gateway to the city of Liverpool.”

Aidan Kehoe, Chief Executive of the Royal Liverpool and Broadgreen University Hospitals Trust, said: “This is a huge moment for all those who have worked so hard, for so long and we are all delighted to have achieved financial close on the new Royal. This is fantastic news for our patients, our staff and the city of Liverpool.

“We will have a world class hospital facility designed to provide a whole new approach to healthcare and help us to tackle some of our region's biggest health issues. The new Royal will improve the health and wealth of the city creating hundreds of construction jobs and training opportunities and paving the way for thousands of high-tech jobs on the BioCampus.”

Carillion Chief Executive, Richard Howson, said: “We are delighted to have achieved financial close on this exciting new hospital, which will be our sixteenth PPP hospital in the UK.

“We look forward to working in partnership with the Royal Liverpool and Broadgreen University Hospitals NHS Trust to deliver a state-of-the-art hospital that will bring substantial benefits to the people of Liverpool.”