Circle secures £50M funding for second new-build hospital
09 December 2010
Circle, the employee-owned partnership of clinicians, has today
secured £50m to fund its second new-build hospital -
CircleReading.
In a deal that signals a breakthrough in the UK development
finance freeze, the site for the hospital has been purchased by the
real estate investment arm for BP's pension fund, Ropemaker
Properties, who will also provide financing for the
construction.
CircleReading marks another milestone in Circle's programme to
build and operate a new generation of state-of-the-art hospitals
across the UK. Circle opened its first new-build hospital -
CircleBath - in March 2010. CircleBath has proved its concept
to deliver a new style of patient experience to both private and
NHS patients - combining award-winning building design with high
quality clinical care and five-star hospitality.
CircleReading will follow the same patient-centric model and is due
to open to the public in Autumn 2012.
Coming on the back of their selection as the preferred partner
to run Hinchingbrooke hospital - the first NHS hospital to be
franchised to the independent sector - last week, the development
of CircleReading confirms that Circle's ambitious expansion
strategy is on track.
Ali Parsa, Circle's Managing Partner said:
"Circle was founded to redefine healthcare delivery in this
country. Patient and GP reaction to our first hospital -
CircleBath - has been phenomenal. We have now set our sights
on transforming the hospital experience and quality of care
available to patients in Reading."
Tim Hayne, of Ropemaker Properties said:
"We are very pleased to be able to facilitate the development of
the latest Circle hospital."
Dominic Reilly, of King Sturge Finance said:
"King Sturge Finance is delighted to have achieved a successful
financing solution on behalf of Circle and to be working with
Ropemaker Properties on such an innovative and exciting real estate
project"
Notes to Editors:
CircleReading will be located in Southside Reading, next door to
the Madejski Stadium, home to London Irish rugby club and Reading
Football FC. The hospital will provide 9,000 square metres of
accommodation, providing 5 operating theatres, 30 private, en-suite
inpatient bedrooms and 18 day-surgery beds.
Circle was advised by King Sturge Finance on the acquisition and
development financing. Vinci will be the main construction
contractor and building works will commence in January.