A consortium featuring construction and regeneration group Morgan Sindall has been appointed as preferred bidder by Hull City Council for its £400 million PFI Building Schools for the Future (BSF) programme.
Esteem, which comprises Morgan Sindall’s investments division Morgan Sindall Investments (MSIL), Robertson Capital Projects and the Sewell Group, has been chosen for the 25-year concession which involves the delivery of seven brand new schools along with major refurbishments to a further ten.
Morgan Sindall’s construction business Morgan Ashurst is a key delivery partner on the project alongside Sewell Construction. The value of the project to Morgan Ashurst is approximately £200 million. Construction work will begin in February 2010 and is expected to complete in January 2014.
MSIL will invest equity and sub-debt of £2.5 million into the delivery of the first school and the establishment of the Local Education Partnership, with further investment expected throughout the duration of the programme. MSIL’s equity stake in the project will be 26.66 per cent. Esteem will provide project and operational management and new project development services into the Local Education Partnership under a 10-year exclusive strategic partnering contract.
Esteem expects to reach financial close on the scheme in late January 2010.
“This award demonstrates Morgan Sindall’s continuing strength in the education sector and our ability to deliver projects that require integrated investment and construction capabilities,” says Paul Smith, chief executive of Morgan Sindall plc. “We look forward to working with our construction partners and Hull City Council to create exceptional, sustainable learning facilities for the people of Hull.”
Photo: An artist’s impression of the new Archbishop Sentamu Academy.