£52m healthcare expansion deal advised and funded out of Birmingham
THE UK’s largest not-for-profit mental healthcare charity has secured a £52.5m funding as part of a deal advised out of Birmingham.
St Andrew’s Healthcare, which has operations in Birmingham, Northampton, Nottinghamshire and Essex, intends to use the funding package to support its continued expansion and the development of a brand new hospital building at its existing site in Northampton.
The Birmingham office of Lloyds Bank Wholesale Banking & Markets arranged the funding to facilitate the construction project, which is expected to begin during 2013.
St Andrew’s Healthcare, which employs more than 4,000 staff across its four operations, offers specialist services for men, women, adolescents and older people with mental healthcare needs, learning disabilities, brain injuries and progressive and neurodegenerative conditions.
The charity’s existing Northampton facility is home to more than 600 service users. The ambitious development of the new 90-bed psychiatric hospital building forms part of St Andrew’s Healthcare’s continuing growth ambitions, and will include new facilities for service users placed by NHS customers. These improvements will further strengthen the charity’s position as the UK’s leading provider of specialist secure care, and as the country’s only independent national teaching hospital.
Over the last 10 years, St Andrew’s Healthcare has reported consistent growth and a significant rise in market share, following the completion of a £200m development and refurbishment programme across all four sites in the UK.
The entire development project is scheduled for completion, subject to detailed planning permission, by the end of 2014.
Nigel Alcock, Chief Finance Officer at St Andrew’s Healthcare, said: “Despite challenging financial forecasts for independent mental healthcare providers, St Andrew’s reported an increase in turnover by over 5% last year to £169m.
“As a charity, it is essential that any financial agreements we enter into are right for our long-term commitment to care for as many people as possible. We are in a very different position to some private companies and that’s why we believe that the charitable model offers huge potential for the sector.
“The funding from Lloyds Bank will help us to maintain the great results we have achieved by reinvesting in the future of mental healthcare over the last few years and we are delighted to have finalised the deal with David Hykin and the team, who have been fantastic to work with.”
David Hykin, Relationship Director at Lloyds Bank Wholesale Banking & Markets said: “St Andrew’s Healthcare has delivered a strong track record of growth in recent years, demonstrating the strength of its balance sheet and its future potential. We are working closely with the management team to support the growth ambitions of the charity, which is a well-established and impressive enterprise in the healthcare sector.”
