Aviva Investors has completed an investment to provide financing towards the development of the new Velindre Cancer Centre in Cardiff, Wales. The investment was made by Aviva Investors on behalf of Aviva UK Life.
Located in Whitchurch in the northwest of Cardiff and 6km from the city centre, the new Velindre Cancer Centre will be located on a 7.8-ha site. It replaces the existing treatment facility which was originally built in 1956 and which currently provides specialist cancer services to over 1.7 million people in South East Wales and beyond.
With ambitions to achieve low-to-zero carbon, the scheme will target a BREEAM ‘Excellent’ rating and is designed to use all-electric solutions and air source heat pump infrastructure, supporting low energy demand and low operational carbon. A strategy is in place to reduce site waste through off-site manufacture of components, to minimise transportation requirements and to create efficiencies in the construction and maintenance of the hospital. It is being developed in compliance with the Wellbeing of Future Generations (Wales) Act 2015 and with the ambition to be one of the most sustainable hospitals in the UK. Construction on the centre is expected to start at the end of March 2024, with the full-service commencement date expected to be 2027.
The project is being procured under the Welsh Government’s Mutual Investment Model (MIM), which has an emphasis on improving public services and providing wider community benefits. It is the second investment Aviva Investors has made under Wales’ MIM, after having provided all senior debt financing towards the development of the Mynydd Isa campus in Flintshire in 2022, the first school under the Welsh 21st Century Schools and Colleges Programme.
Darryl Murphy, Managing Director of Infrastructure, at Aviva Investors, said: “We are pleased to have completed this investment, which we believe will deliver a significant amount of social value to a huge number of people, and that also has the ambition to be a world-leading example at the vanguard of sustainable medical facilities. With an experienced consortium, this is a critical asset under the Welsh Government’s ‘Taking Wales Forward’ strategic plan. We are also glad to further our support for the Welsh Mutual Investment Model and to help deliver a world-leading social infrastructure facility.”
Marcus Mollan, Investment Director at Aviva, added: “We are very pleased that Aviva’s annuity business supports vitally important projects like this across the UK. The new Velindre Cancer Centre builds on the current hospital’s reputation and will be instrumental in providing care to many people across South Wales and beyond. With the scheme's ambition to also provide an international focal point for research and development through its Collaborative Centre for Learning, Technology & Innovation, we are very proud to play a part in helping the UK get ready for the future by supporting a facility which will create a significant legacy and positive impact on people’s lives for generations to come.”
Image provided by FTI Consulting.
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