Esteem appointed preferred bidder for £400 million
Morgan Sindall plc, the construction and regeneration group, today announces that Esteem, comprising Morgan Sindall Investments (MSIL), Robertson Capital Projects and the Sewell Group, has been appointed as preferred bidder by Hull City Council for their £400 million PFI Building Schools for the Future (BSF) programme.
The 25-year concession involves the delivery of 17 schools comprising seven newly built schools and major refurbishments to a further ten schools.
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.
Paul Smith, Chief Executive of Morgan Sindall plc said:
"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.
"We look forward to working with our construction partners and Hull City Council to create exceptional, sustainable learning facilities for the people of Hull."