A subsidiary of Austrian developer Strabag has been awarded a €52 million public-private partnership (PPP) contract to upgrade a nurses’ home at a hospital in Bavaria, Germany.
The subsidiary, Hermann Kirchner, will construct an additional building to improve the hospital’s existing residential facility and will also add a heating system, helicopter landing pad, and car park, according to a statement. Gross investment costs for Hermann Kirchner are expected to be about €30 million.
Construction should last three years, according to Strabag, and the PPP agreement includes a 30-year operating contract.The hospital, called Klinikum Ansbach, is jointly owned by the City of Ansbach and the District of Ansbach.
Financing for the project will be provided by Sparkasse Ansbach and Bayern LB, according to a statement from Strabag. Strabag said the financing will be handled through non-recourse forfeiting, which means the developer will sell its claim to contractually agreed availability payments to the banks. Availability payments are public contributions paid in exchange for making an asset available in good condition.
In July, Strabag, together with German developer Hochtief, reached financial close on a €410 million public-private partnership to develop a section of the A8 highway connecting the German cities of Ulm and Augsburg.