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M&G partners with EIB to finance children’s hospital

M&G has partnered with the European Investment Bank to provide debt finance to a new children’s hospital project in the UK.

The UK-based Alder Hey children’s hospital project will be co-financed by M&G Investments and the European Investment Bank, who together will supply £130 million ($197 million; 153 million) to the project.

Property developers John Laing and Laing O’Rourke Construction will each hold 40 percent of the total investment equity in the project with another developer, Interserve, holding 20 percent. Laing O’Rourke will design and build the new hospital and Interserve will maintain the hospital infrastructure.

John Laing and Laing O’Rourke started the bidding process in June 2012, following approval by the Department of Health and HM Treasury. A proportion of the scheme is funded by the Trust’s own financial resources alongside charitable donations. The remainder of the scheme is being funded through a Private Finance Initiative (PFI).

The £167 million hospital project, which is being built on behalf of Alder Hey Children’s NHS Foundation, will have a floor area of 51,000m2, and will contain 270 beds and 16 state of the art operating theatres. Further, 75 percent of bedrooms will be single occupancy with en-suite bathrooms, improving privacy and dignity for patients and their families.

“This is an exciting project for all of us,” said Peter Ward, director of healthcare projects at John Laing. “Not only because of the innovative nature of its funding and design but more importantly, because it will provide the very best facilities and therapeutic environment for sick children and their families across Europe.”

 The official opening of the new hospital is planned for autumn 2015.