Firm enters joint ventures in a bid to win long-term health deals with public sector clients

QS and project management group Cyril Sweett is pushing ahead with taking equity stakes in PPP projects.

The firm is part of two joint venture companies bidding for NHS LIFT schemes in England. The first, in partnership with contractor Midas and investment firm Sutton Harbour, is called LIFT Investments. It closed its first deal in Plymouth last October and is bidding for a new one planned for Wiltshire. In both cases the firm is taking a 19% equity stake in the deals.

The second is a consortium called LIFT Partnerships, a joint venture with Allied Irish Bank. The consortium does not have a contractor as an equity partner but has a close relationship with contractor Kier Marriott. It is shortlisted for a LIFT scheme in the south of the Midlands.

Cyril Sweett director of project investments Steve Rickwood said taking equity stakes was part of the company's involvement in LIFT projects, either as advisors to public sector clients or as part of bidding teams.

He said: "I think it's fair to say that out of 42 LIFT schemes so far we are involved with around 26."

Out of 42 LIFT schemes so far we are involved with around 26... it makes sure we have the enthusiasm to work with the public sector authorities for the length of the deals

Steve Rickwood, director of project investments, Cyril Sweett

Rickwood said taking equity in the deals confirmed the firm's commitment to the schemes. "It means we are in for the long term, not short term," he said. "It secures us core services for a long time and makes sure we have the enthusiasm to work with the public sector authorities for the length of the deals. It's an important part of the philosophy of the company."

Rickwood stressed that the firm would take stakes in smaller projects rather than sizeable PFI hospital projects, on which it advises big bidders such as Skanska.

The firm is also set on taking a 5% stake in an education PPP scheme with partner Carillion.

Last week QS News revealed that fellow major player EC Harris was taking a 33% stake in a bid for a £245m building schools for the future project in Greenwich.

Source

QS News