Balfour Beatty in consortium with Prime and InfraRed to deliver landmark primary care programme in Ireland
19 May 2015
Balfour Beatty in a consortium with Prime and InfraRed Capital Partners Limited (as the investment adviser to HICL Infrastructure Company Limited (HICL), the listed infrastructure fund) has been selected as Preferred Tenderer to deliver 14 primary care centres across Ireland. The project, with a combined capital value of circa €140 million, is the first programme of its kind in [the Republic of] Ireland’s primary care market.
The Health Service Executive (HSE), which provides all of Ireland's public health services, issued the tender through the National Development Finance Agency (NDFA) in response to the government's health reform programme, which places a new emphasis on developing the role of primary care within a universal healthcare system.
The Prime led Consortium combines the considerable skills and resources of healthcare property company Prime, international infrastructure group Balfour Beatty, and InfraRed Capital Partners Limited a leading global investment manager focused on infrastructure and real estate. Over the last five years Prime, Balfour Beatty and InfraRed have successfully raised over €3 billion of senior debt funding to support projects across the PPP infrastructure and primary care markets.
The successful bid was based on the concept of ‘One project, fourteen communities’. Each primary care centre has been designed to address its local needs and location, while combining common elements such as energy conservation, materials selection, operational needs and maintenance requirements all aimed at delivering value for money. This is a 25-year Design, Build, Finance and Maintain (DBFM) contract.
As experienced providers in the PPP and primary care markets, Prime and Balfour Beatty have brought together a team of 500 professionals to deliver the project.
A key aspect of the bid was the strategic commitment to local procurement with companies such as Balfour Beatty Ireland, JJ Rhatigan & Company and Aramark Ireland forming part of the delivery team. Local subcontractors and suppliers will also feature strongly in each project.
In addition to GP services at each of the new primary care centres, some sites will include additional services such as: dental services; physiotherapy, speech and language services, community nursing, community mental health services, child and adolescent mental health services, early intervention teams, and doctor on call services.
The Consortium will now work closely with the HSE and NDFA towards financial close targeted for Q4 2015. The NDFA (part of the National Treasury Management Agency) is the procuring body and financial adviser for and on behalf of the Department of Health who are the Sanctioning Authority with the HSE as Sponsoring Agency.
Tzvetelina Bogoina, Balfour Beatty Bid Director, said: "Balfour Beatty is a trusted partner in the healthcare construction and maintenance sector having delivered over £2billion worth of hospitals and care centres over the past decade. We look forward to working with the HSE and NDFA to deliver these primary care centres which will make a great, positive difference to local communities, not only in terms of health outcomes but in the positive impact it will have in creating local jobs."
Will Bilbrough, Development Director at Prime plc, said: “We are delighted to have been appointed preferred tenderer and look forward to working with the HSE and NDFA to deliver this pivotal healthcare PPP for communities across Ireland. Our expertise in design development enabled us to work within strict criteria and still enhance the designs for each primary care centre. In doing so, we added value by demonstrating opportunities to improve patient and staff environments and maximise flexibility, ensuring each centre can respond to changes in service provision in the future.”
Tony Roper, Director at InfraRed Capital Partners Limited added: “HICL has successfully invested alongside Prime in a number of primary care developments over the last few years and is very pleased to be able to have the opportunity to work alongside its Consortium partners and the HSE to deliver new vital improvements to the provision of primary care in Ireland.”
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Notes to editors:
Balfour Beatty is a trusted delivery partner to the healthcare sector and has delivered £2 billion worth of healthcare projects in the past decade providing 800 mental health beds and 3000 acute beds. It has strong financial covenants providing clients with financial certainty for schemes requiring private sector investment. With its specialist Engineering Services business, Balfour Beatty is able to provide innovative and cost-effective solutions such as its award-winning off-site manufacturing facility, Modular Systems+.
Current schemes Balfour Beatty is delivering in the sector include the £46m Acute Mental Health and North Ayrshire Community Hospital in Irvine, the £26m Guys Hospital Tower Wing, the £50m Great Ormond Street Hospital refurbishment projects, the £17.5m Wellington Hospital Platinum Centre project in St John’s Wood, (Britain’s largest private hospital); £30m mechanical services for the Cramlington Hospital near Newcastle, £7m St Mary’s Hospital Older Persons Unit, Kettering, £23m Women and Children’s centre at Princess Royal Hospital Telford, and the new £23m QEII Hospital in Hertfordshire.
Balfour Beatty is a leading international infrastructure group.
With 36,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth.
We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.
Our main geographies are the UK, US, Middle East and South East Asia. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics’ Aquatic Centre, Hong Kong’s first Zero Carbon building, the world’s biggest shopping mall in Dubai, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
Prime is a healthcare property business operating across the whole healthcare market. The group was formed in 1996 bringing together expertise in property investment, design, development and healthcare. This diversity affords the agility to swiftly adapt services and business models to help clients improve patient and staff experience and deliver more for their local health economy. Its focus is strategic planning, sourcing, design, development, funding, ownership and management of health and social care properties. The group acts as a strategic and commercial property partner for NHS trusts in the UK, local authorities, GPs and other providers who can source all their property and estates services from Prime - from strategic planning to project delivery.
For more information see www.primeplc.com
InfraRed Capital Partners
The Investment Adviser to HICL Infrastructure Company Limited is InfraRed Capital Partners Limited ("InfraRed"), which has successfully invested in over 160 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Paris, Seoul and Sydney. With over 100 professionals it manages in excess of USD 8bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of over 50 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.