DIF, Innisfree buy stakes in UK hospital

The infrastructure investors have each acquired a 12.5% stake in the £1.7bn Bart’s Hospital PFI – the UK’s largest hospital PFI. The sellers were the Commonwealth Bank of Australia and John Laing. Both DIF and Innisfree have lately been active in the secondary market for PFI projects.

DIF and Innisfree have each acquired a 12.5 percent stake in the £1.7 billion (€1.9 billion; $2.8 billion) Bart’s Hospital PFI – the UK’s largest hospital public-private partnership.

Entering the project for the first time, DIF bought a 12.5 percent stake from the Commonwealth Bank of Australia (CBA) through its second infrastructure fund, DIF Infrastructure II. Innisfree purchased an equivalent stake from John Laing to increase its overall stake in the hospital project to 50 percent and become its largest stakeholder. DIF, CBA and John Laing did not wish to comment on the price the stakes were sold for.

Bart's Hospital:
DIF, Innisfree 
new tenants in
capital structure

The hospital project was procured under the UK government’s PFI programme, a standardised procurement process involving the private sector. It involves the redevelopment of two hospital sites, the Royal Hospital of St. Bartholomew’s (Bart’s), founded in the 12th century, and the Royal London Hospital, the capital’s leading emergency centre. 

The concessionaire will receive availability payments – agreed-upon instalments which allow the authorities to regulate payments to the consortium if it does not fulfil certain contractual parameters – for the duration of the concession’s 42 years.

Both DIF and Innisfree have been active in the PFI secondary markets. In December, DIF acquired 50 percent of a portfolio of 10 schools project while Innisfree bought a 50 percent interest in two schools projects.