With its financing of the public-private partnership (PPP) project "Irish Primary Care Centres", Talanx has made the next direct debt investment in the infrastructure market. The insurance group is co-investing along with MUFG and the EIB a volume of around €140m in total to fund the conception, construction and maintenance of 14 primary health care centres.
"After having successfully invested in the conception, refurbishment and maintenance of seven Irish court buildings in December 2015, we are delighted to make a contribution to Ireland's health care system with this new investment", said Dr Thomas Mann, CIO at Talanx Asset Management. "With this investment, we further underline our project finance expertise and lock-in returns significantly in excess of current 30-year German government bond yields." The financing has a tenor of around 27 years. However, the average duration of capital commitment in the PPP-project will be only 14 years, because the repayment already starts after the construction is completed. Start of construction will be in June 2016 and building time is expected to take 27 months.
Tendering authority is the Republic of Ireland via its Department of Health as well as the subordinate Health Service Executive, as an organisation and employer responsible for all public health services in Ireland. The project is being delivered by a consortium including Balfour Beatty Investments Limited, a British construction company with longtime experience in PPP-projects, Prime plc, a real estate company with expertise in the health care sector and HICL Infrastructure Company Limited, a listed infrastructure fund with relevant sector experience. The European Investment Bank contributes €70m to the PPP project, which makes up around 50% of the total debt funding. It will be the first health care project in Ireland to benefit from EIB support. Talanx and MUFG provide the remaining €70m.
The new primary care centres' aim is to relieve hospitals and make health care services easier available especially in rural areas and according to the increased demand of health care services by elderly people. Ireland's elderly population is growing at higher rates than the European average. In each of the 14 centres there will be a primary care team, including general practitioners (GP), practice nurses, physiotherapists, home help and support staff. Services will include GP services, occupational therapy, social work, dietary services, speech and language therapy, mental health services, counselling and dentistry. Besides the improving of health care services, the PPP project is going to generate jobs in the construction phase as well as in the operating phase.
