Circle Secures GBP50M Funding for Second New-Build Hospital

December 9, 2010

LONDON, December 9, 2010 /PRNewswire/ — Circle, the employee-owned
partnership of clinicians, has today secured GBP50m to fund its second
new-build hospital – CircleReading.

In a deal that signals a breakthrough in the UK development finance
freeze, the site for the hospital has been purchased by the real estate
investment arm for BP’s pension fund, Ropemaker Properties, who will also
provide financing for the construction.

CircleReading marks another milestone in Circle’s programme to build and
operate a new generation of state-of-the-art hospitals across the UK. Circle
opened its first new-build hospital – CircleBath – in March 2010. CircleBath
has proved its concept to deliver a new style of patient experience to both
private and NHS patients – combining award-winning building design with high
quality clinical care and five-star hospitality. CircleReading will follow
the same patient-centric model and is due to open to the public in Autumn

Coming on the back of their selection as the preferred partner to run
Hinchingbrooke hospital – the first NHS hospital to be franchised to the
independent sector – last week, the development of CircleReading confirms
that Circle’s ambitious expansion strategy is on track.

Ali Parsa, Circle’s Managing Partner said: “Circle was founded to
redefine healthcare delivery in this country. Patient and GP reaction to our
first hospital – CircleBath – has been phenomenal. We have now set our sights
on transforming the hospital experience and quality of care available to
patients in Reading.”

Tim Hayne, of Ropemaker Properties said:”We are very pleased to be able
to facilitate the development of the latest Circle hospital.”

Dominic Reilly, of King Sturge Finance said:”King Sturge Finance is
delighted to have achieved a successful financing solution on behalf of
Circle and to be working with Ropemaker Properties on such an innovative and
exciting real estate project”

Notes to Editors:

1. Circle forms the largest partnership of clinicians in Europe and is
co-owned and managed by all the doctors, nurses and staff who work in
Circle’s hospitals, treatment centres and clinics.

2. CircleReading will be located in Southside Reading, next door to the
Madejski Stadium, home to London Irish rugby club and Reading Football FC.
The hospital will provide 9,000 square metres of accommodation, providing 5
operating theatres, 30 private, en-suite inpatient bedrooms and 18
day-surgery beds.

3. Circle was advised by King Sturge Finance on the acquisition and
development financing. Vinci will be the main construction contractor and
building works will commence in January.

4. CircleBath is a 6,500 square metre hospital with 4 operating theatres,
30 private, en-suite in-patient bedrooms and 18 day-surgery beds. Since it
opened in March 2010, CircleBath has consistently delivered high-quality
clinical outcomes, with no returns to theatre, zero infection rates, and
every surgical procedure filmed to facilitate a culture of complete patient
safety. Treatment is delivered in the first Norman Foster designed hospital
in the world, described by The Observer as ‘one of the finest hospitals in
Britain‘, and recently voted ‘Best Building in Britain‘, beating off stiff
competition from the Victoria & Albert Museum, the UK Supreme Court and 23
Savile Row, Mayfair. Hospitality services are designed by the team that
brought Mandarin Oriental into the UK, and delivered daily by former
five-star hoteliers. Food is cooked by a chef previously from a
Michelin-starred restaurant. 995 patients out of 1000 would recommend
CircleBath to friends and family, with many describing the experience as
their best ever at a UK hospital.

5. Additionally Circle operates and manages the Nottingham and Midlands
NHS Treatment Centres, on behalf of the NHS, where Circle treats around
137,000 NHS patients per annum and delivered over 20% productivity
improvement during its first year of operation.

6. Circle also owns and runs two surgical clinics in Windsor and

7. Circle plans to build up to 30 hospitals across the UK over the coming


Source: newswire

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