International law firm Pinsent Masons has advised on the UK's first Local Asset Backed Vehicle (LABV) public private partnership for the healthcare sector.
Pinsent Masons acted for Calderdale and Huddersfield NHS Trust in relation to Pennine Property Partnership; a 20-year property investment partnership between the Trust and Henry Boot Developments. The partnership, was announced today (Friday). LABVs are increasingly gaining traction as a means to drive forward regeneration but this is the first of its kind in the country for the NHS.
The 50/50 partnership will deliver serviced accommodation for the Trust (including clinical and non-clinical accommodation) and will develop other surplus sites. It will be funded by both partners with Henry Boot matching the value of the Trust's land assets transferring to the partnership.
Scot Morrison, a Partner at Pinsent Masons who was part of the team advising the Trust, said "We are delighted to have worked with the Trust in completing the first health sector LABV.NHS Trusts are increasingly turning to the LABV model to extract maximum value from their assets and to secure investment in facilities. The LABV is the third to be established this year by the Pinsent Masons Structured Solutions team specializing in government alternative funding models."
Sue Burton, Director of Property Partnerships at the Trust, said "The process allowed the Trust to develop an innovative approach to turn the value in assets into benefits for our local population. In difficult economic times it provides a vehicle to deliver health care facilities fit for the 21st century, adding flexibility of funding arrangements and the benefits of utilizing public and private sector skills".
Source: MJ2 Limited