Hogan Lovells advises Serco Consortium on DCMF Belmarsh West prison PFI project
07 July 2010
London 7 July 2010 - Hogan Lovells has advised a Serco-led consortium on the DCMF Belmarsh West prison PFI project.
The deal involves the design, construction, management and financing of a new Category B local prison, providing 900 prisoner places for adult male prisoners. The prison is to be built next to HMP Belmarsh prison in South-East London with completion expected in the first half of 2012. Serco is the Prison Operator and will be working with leading voluntary sector partners Turning Point and Catch22 to ensure particular emphasis is placed on the rehabilitation of prisoners.
Commenting on the deal, Christopher Cross, Partner at Hogan Lovells said:
"We are delighted to close this significant project which further bolsters our considerable track record in the Justice sector. This is the first prison contract in the UK to be awarded to an alliance of the private and voluntary sectors. This is also the first prison deal to close on the Government's new standard terms and it took real teamwork from all participants to bring the various deal and sector specific issues to a successful conclusion. "
Adrian Walker co-head of Infrastructure at Hogan Lovells said:
"The Serco relationship is very important to us and we have been fortunate to have the opportunity to contribute to their and their customer's success over a particularly strong range of projects. We are now looking forward to working hard over the coming months to help them deliver the second prison deal, Maghull, where they are also preferred bidder."
The construction contractor is Skanska Projects. Debt financing is being provided by Bank of Ireland, Barclays Corporate, Helaba (Landesbank Hessen-Thüringen GZ, London Branch) and The Royal Bank of Scotland PLC. Barclays Infrastructure Funds is the sole provider of the equity finance. Linklaters acted for the banks and Eversheds represented the Ministry of Justice.
The Hogan Lovells team included Associates Simon Barrett, Alistair Cowling, Cheryl Enyati, James Larmour and Caroline Perry and was led by partners Christopher Cross, Andrew Gallagher and Adrian Walker.