Tuesday, February 17, 2009

Carillion announces £300m BSF schools deal has reached financial close

A Carillion joint venture has reached financial close on a ВЈ300m Building Schools for the Future (BSF) project in Manchester.

Carillion is one of the partners in the jv called the Local Education Partnership (LEP).

The deal the jv has finally shaken hands on is the Tameside BSF project.

Carillion’s partners in LEP are Tameside Metropolitan Borough Council and Building Schools for the Future Investments.

The Carillion jv will deliver 12 secondary and special schools, at a capital cost of ВЈ173 million.

There will also be two privately financed schools - Carillion will start building them in March 2009 and will then provide facilities management services over the following 25-year concession period. This element is worth a further ВЈ21m.


Carillion announces £300m BSF schools deal has reached financial close


All 12 schools will be completed by the end of 2012. 

The private finance element of the project is being funded by the usual combination of borrowing and equity.

Barclays has signed up to provide ВЈ50m of debt finance.

A further ВЈ4.2m of equity is being poured in – Carillion’s share is ВЈ3.4 million while the other two members will add ВЈ400,000 each. 

There is bonus in that the jv will also deliver further new schools for Tameside Metropolitan Borough Council in subsequent waves of the BSF programme.

Estimates show this add-on element to have a capital value of ВЈ120m.

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Make fees, expectations clear from the outset