“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”, says Dr Thomas Mann, Chief Investment Officer 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 EUR 70 million to the PPP project, which makes up around 50 percent 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 EUR 70 million.
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.
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.