Glasgow Health Bundle hub Project

QMPF advised hub West Scotland Project Company 7 Limited (“DBFMco”) on the Glasgow Health Bundle hub project, the seventh Design, Build, Finance and Operate (DBFM) project signed by the territory. The project combines the delivery of the new Greenock Health and Care Centre, Stobhill Mental Health Facility and Clydebank Health and Care Centre.

The SPV consists of Wellspring Partnership (a consortium of Morgan Sindall Investments, Community Solutions and Apollo Capital Projects), Scottish Futures Trust Investments, HCF Investments and NHS Greater Glasgow and Clyde.

The project will require two financial close processes. Financial close for two of the facilities was achieved in December 2018, with senior funding of c. £31m being provided by Nord/LB and subordinated debt from DBFMco of c. £2.6m. Due to ongoing site difficulties, construction the Clydebank facility has been delayed, however this facility will be incorporated as a variation to the previously closed transaction, with an additional financial close process anticipated within the year.

The QMPF role included developing and managing the financial models required for the affordability, Scottish Government/SFT approval and financial close stages of the project, with tight affordability margins necessitating the timely turnaround of updated financial models and performance data throughout the process. QMPF liaised with the sponsors, funder and model auditor to efficiently conclude the financial modelling for the project and provide all parties with project sensitivities sufficient to support the delivery of funding. QMPF also assisted Burness Paull with the review and negotiation of the project documents and led the debt pricing process at financial close.