StormHarbour Raises Innovative Financing to Support Construction of New UK Surgical Hospital
Tuesday, May 15, 2012

StormHarbour announced today it has successfully raised mezzanine financing for KIMS Property Company Limited as part of an £83m funding package for the construction of the Kent Institute of Medicine and Surgery (KIMS), a new tertiary hospital to be built in Maidstone, Kent. KIMS will be one of the UK's most advanced surgical hospitals and is expected to create around 400 new jobs in Kent.

 StormHarbour structured and placed the mezzanine tranche, a critical part of the capital structure needed to complete the £83 million project, with institutional investors. Senior financing was provided by Clydesdale Bank, which together with the mezzanine and contribution by approximately 100 clinicians and private investors, covered the initial build and ongoing operational costs of the development.


KIMS has taken five years to plan and is due to open in early 2014.  The hospital will provide care across multiple disciplines, including Neurosurgery, Cardiac Surgery and Orthopaedics. Although the hospital will primarily provide medical care to private patients, 25% of its capacity will be made available to the NHS. The longer term vision is to extend the site to create a medical campus that will be a 'centre of excellence'.


Amir Hoveyda, a Managing Principal of StormHarbour, said: “This is another significant transaction for StormHarbour which clearly illustrates our ability to structure and place innovative asset based financings with leading institutional investors. This global distribution strength across the capital structure, combined with our significant experience and expertise in complex financial advisory and structuring, enables us to deliver bespoke solutions and best-in-class execution for our clients.”


Wade Newmark, a Managing Director at StormHarbour in London said: “StormHarbour is proud to have worked with VINCI PLC and KIMS on this very significant financing which provides a blueprint for the future funding of hospitals in the UK”.


Stephane Marchi, Co-Head of Infrastructure, added: “This transaction allows the healthcare sector to break away from relying on a diminishing pool of government funding via the old PFI and PPP model in a time of increasing constraint on the public expenditure.”