Three Danish pension funds enter DKK430m public-private partnership
PensionDanmark, PKA and Sampension are investing DKK430m (€57.6m) jointly in a public-private partnership (PPP) deal to build and operate a new psychiatric hospital in the city of Vejle.
The project is the first to be undertaken by the consortium of the three labour market pension funds, Nordic contractor MT Højgaard and property administrator DEAS since the firms announced a partnership in December 2012.
Torben Möger Pedersen, managing director at PensionDanmark, said: “We are really glad to have the opportunity to invest in this ground-breaking PPP project.
“The investment will give members a good and stable return for many years and at the same time ensure patients and staff get high-quality physical conditions.”
The five businesses said in 2012 they were setting up a “one-stop shop” to help public authorities plan, build and finance construction projects and envisaged investing up to DKK5bn together in infrastructure and real estate PPPs.
PensionDanmark said the consortium was chosen by the Region of Southern Denmark municipality in what would be the first public-private hospital construction project in Denmark, and one of the biggest standalone PPP projects of any kind in the country.
The three pension funds will provide the financing while MT Højgaard will be responsible for construction and operation for a 25-year period in conjunction with DEAS.
Work on the new hospital, which will be connected to Vejle hospital via a 200m tunnel, is planned to start this summer.
MT Højgaard said the new facility would have a total value of about DKK930m.
It will have 91 beds, plus eight beds in an emergency unit, as well as a psychiatric outpatient clinic for children and young people.
The project consists of eight cluster houses gathered around common areas and recreational patios.
The buildings will be two storeys high with a total area of 17,000sqm and be ready for use by the end of 2016.