Prudential has provided GBP85 million to build the new hospital, which is designed to ensure Edinburgh maintains its reputation as a world-class centre of excellence in medicine.
The new building in Little France will replace the existing Royal Hospital for Sick Children, and include services from the Department of Clinical Neurosciences and Child and Adolescent Mental Health Services.
Prudential’s long-term insurance funds will provide the funding for the development through its European asset management arm, M&G Investments. Prudential currently has over GBP40 billion of infrastructure and property holdings through M&G.
The deal underlines Prudential’s commitment to invest in the UK’s infrastructure.
Prudential provided GBP45 million last year to enable the Link Group housing association to accommodate more families in housing need in Scotland and GBP67 million in 2013 for the new Alder Hey Children’s Hospital in Liverpool, which is due to open later this year.
Prudential’s funding will be accompanied by GBP85 million from the European Investment Bank and GBP15 million from Macquarie Capital.
Simon Pilcher, Chief Executive, Fixed Income, M&G Investments, says: “The new hospital in Edinburgh will ensure staff can continue to provide the highest quality of care for patients in world-class facilities. Both Prudential and M&G are committed to investing in infrastructure projects that benefit the UK and we are proud to play our part in the opening of the new hospital.”
