Lend Lease ups stake in Manchester University hospitals

The deal, which follows the fund’s acquisition of an education project in Birmingham this summer, brings its UK assets under management to £162m.

The Lend Lease Infrastructure Fund has increased its holding in Central Manchester University Hospitals, one of the UK’s largest medical teaching and research centres.

The fund now owns 65 percent of the project, up from the 50 percent it acquired two years ago. The additional stake was purchased from French facilities management group Sodexho, which continues to provide services to the hospitals.

The Central Manchester University Hospitals went through a £397 million (€469 million; $634 million) redevelopment over the last decade. The project, one of the largest Private Finance Initiative (PFI) healthcare schemes ever procured by the government, saw the re-provision of four existing hospitals as well as the creation of a new centralised children’s medical centre. It completed in May 2010.

The hospitals now receive visits from more than one million patients a year, and its children’s hospital is billed as the largest in Europe. Sodexho and Lend Lease provide maintenance, lifecycle and non-clinical soft services to the facilities over a 38-year concession term, which started in 2005.

The Lend Lease Infrastructure Fund was formed in 2010 with £220 million and 15 PFI/PPP projects. It is 10 percent-owned by Australian property and infrastructure group LEND Lease, with the rest belonging to Dutch fund manager PGGM.

The fund’s latest transaction boosts its UK assets under management to £161.6 million. It comes after the vehicle acquired a 75 percent stake in the Birmingham Building Schools For Future scheme this summer, which brought the total number of projects it has in its portfolio to 20.