University Hospital Southampton NHS Foundation Trust
We advised University Hospital Southampton NHS Foundation Trust to form a Commercial Estates Development Partnership (CEDP), which is UHS’s own tailored version of the Strategic Estates Partnership (SEP) model, introduced to the NHS in 2010. The Trust’s JV partner is Interserve Prime, which is itself a JV that brings together the construction expertise and financial strength of Interserve Construction Limited with the health sector expertise of LIFT investor and health facilities developer, Prime PLC.
Hempsons delivered a full service advising on: regulatory compliance; corporate governance; procurement law; formation of the corporate vehicle; key JV-level contracts; and further project level documents.
What we did that was special
We have subsequently supported the Trust to bring forward the first two capital schemes to Financial Close and subsequently to Practical Completion. These were (in 2014-16) the redevelopment the Main Entrance and Retail Areas and (in 2016-17) the construction of a multi-storey car park and reconfiguration of parking and access across the Hospital site.
The Trust has made the most of their partner’s private sector PFI and major projects capabilities, but without having to accept the drawback inherent in PFI. The first two schemes have both been cash-flowed by the private sector, with investor funding secured through project agreements and agreement for lease arrangements.
Further schemes are proposed including a private patient unit and a patient hotel. The capital expenditure value of the CEDP stands to exceed £50m with operational expenditure above £330m.