Meridiam closes first Turkey PPP

The Paris-based fund manager has reached financial close on the Adana Integrated Healthcare Campus project.

Meridiam, the Paris-based fund manager, has announced financial close on the €550 million Adana Integrated Healthcare Campus project in Turkey – its first project in the country.

The deal involves a contract to design, build, finance, operate and transfer (DBFOT) the hospital, with a 36-month construction period followed by a 25-year operating period.

The project reached commercial close on August 26 this year with the signature of a project agreement between Turkey’s Ministry of Health and the project company set up by Meridiam and local partners.

The hospital will have 1,550 beds, helping to meet a growing demand for healthcare in and around Adana, a city in southern Turkey with a population of more than 2 million.

Facilities within the complex will include: a general hospital (584 beds); an oncology hospital (182 beds); a cardiovascular hospital (185 beds); a women and children’s hospital (349 beds); a physical medicine and rehabilitation hospital (150 beds); and a forensic psychiatric hospital (100 beds).

Meridiam becomes the first overseas-based global investor to complete a deal in the Turkish PPP market. It has a 40 percent stake in the project company alongside local partners Ronesans (40 percent), SAM (10 percent), Sila AS (6 percent) and TTT (4 percent).

In a statement, Meridiam described the deal as “a milestone for the local project finance market” with development institutions such as the European Bank for Reconstruction and Development (EBRD) and International Finance Corp (IFC) participating alongside global commercial banks to provide long-term tenors.

“The Adana Integrated Healthcare Campus represents an important transformational step forward in the development of Turkey’s healthcare sector. We are extremely proud to be pioneer investors in the country’s promising PPP market,” said Thierry Deau, president and founder of Meridiam.