BAM PPP Reaches Financial Close on Solihull BSF
3 May 2007 - BAM PPP has reached financial close on Solihull Council's £83m BSF project. BAM PPP is sponsoring the deal with HBG UK providing an integrated solution with HBG Construction as building contractor, HBG Design providing some of the design services and HBG Facilities Management providing services on the 27 year operational concession.
The scheme consists of a construction value of £83m for three PFI schools and a D&B school all contracted through a single project agreement. The schools are all of distinct and bespoke design with each school facility responding to the educational vision and particular stakeholder requirements. The school will have extended opening to provide high quality facilities for the community.
The PFI schools are Smith's Wood Sports College (1400 pupil), Park Hall Secondary School (1400 pupil), and Lanchester Campus comprising Lanchester School (50 Pupil ESBD) and a 40 place Pupil Referral Unit. The design and build school is Archbishop Grimshaw Catholic School (1400 pupil), a VA school operated by the Archdiocese of Birmingham. The Lanchester Campus will be the first to become operational in July 2008, with Park Hall and Archbishop Grimshaw schools operational in October 2008 and lastly Smith's Wood fully operational in August 2009.
The ICT element of the project is outside of the PFI and has been separately procured by the Council who appointed RM Education as their ICT provider. BAM, RM, HBG and the Council have all worked closely to integrate ICT into the design and operation of the schools. An ICT Interface agreement is in place between RM and BAM.
BAM PPP provided 100% of the £6m equity and sub debt; DePfa Bank is providing £61m of debt for the PFI element of the project on a 27 year tenor and the Council contributed £24m for the design and build school and grant aided project elements.
Simon Turner, Projects Director, BAM PPP said: ‘We are absolutely delighted to reach financial close on this first wave BSF schools project and look forward to delivering and operating these excellent schools in the North of Solihull that will contribute to the Council's extensive regeneration plans for the area.'
Note to Editors:
BAM PPP is the primary investor within Royal BAM Group for PPP projects involving equity. Currently BAM PPP has more than 25 PPP projects in its portfolio, 17 of which are operational. BAM PPP is active in the Netherlands, Belgium, UK, Ireland and Germany in the road rail, education, health and law & order PPP sectors. HBG Construction Ltd and HBG Facilities Management Ltd are business units of HBG UK Ltd. HBG UK Ltd is one of the UK's leading construction services organisations, with a turnover exceeding £800 million. It operates throughout the UK from regional centres in Bristol, Cardiff, Coventry, Edinburgh, Exeter, Glasgow, Leeds, London, Manchester, Newcastle and St. Albans. BAM PPP and HBG UK Ltd are wholly owned subsidiaries of Royal BAM Group, a worldwide construction services company turning over €8bn that is listed on Euronext Amsterdam.