Lend Lease Infrastructure Fund increases equity share in children’s hospital
The Lend Lease Infrastructure Fund has increased its shareholding from 50 to 65 per cent in the Central Manchester University Hospitals Project, which brings the company’s UK infrastructure funds under management to GBP161.6m.
The additional stake was purchased from Sodexo, which continues to provide both soft and hard facilities management services at the hospitals.
The Central Manchester University Hospitals are acknowledged as one of the UK’s leading teaching and research centres and they see more than one million patients each year across a vast range of clinical specialities. Since the Lend Lease Infrastructure Fund’s initial acquisition of 50 per cent of the equity two years ago, the project's performance has seen a significant boost demonstrated by the improvement in the investment rating and improved partnership relations on the site.
The redevelopment of the Central Manchester University Hospitals is one of the largest private finance initiative healthcare schemes ever procured under the government programme. Lend Lease’s initial design and build involved the re-provision of four existing hospitals on the Manchester Royal Infirmary Site and the creation of a new centralised children’s hospital – one of the largest in Europe.
The Lend Lease Infrastructure Fund was established in 2010, with 15 PFI/PPP projects. Earlier this summer, the fund acquired 75 per cent of the Birmingham Building Schools For Future (BSF) scheme, bringing the total number of projects in the Fund to 20.
Barry Millsom, Lend Lease Infrastructure Fund manager, says: “The improvement in the operation of the asset has allowed for the Fund to make this additional acquisition. Our investment partner, PGGM, has been very supportive of this acquisition and as a consequence our relationship remains very strong.”