The Railways Pension Scheme investment manager – which manages £37billion in assets – has struck a deal with Monkwearmouth Development to fund the redevelopment and extension of Monkwearmouth Hospital in Sunderland.
The investment, in partnership with the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust, will create a brand new 35,000 square foot facility to enable the NHS trust to provide a wide range of NHS services to the local community.
The deal, part of Railpen’s commitment to sustainable ownership, is expected to deliver long-term, inflation-linked returns for members of the Railways Pension Scheme.
Railpen’s Chief Investment Officer, Julian Allport, said: “The creation of a new mental health facility to provide more and better support for patients is a key initiative for the Sunderland community and one that responds to all Railpen’s strategic investment criteria.
“The new facility will help more people than the one it replaces, create a much better environment for staff and patients, and deliver long-term returns for our members. It’s exactly the kind of socially responsible and sustainable investment that we are looking for.”
Tyne and Wear NHS Foundation Trust chief executive James Duncan added: “Railpen’s investment in the new facility will ensure that our vital services, supporting people of all ages with their mental health needs, can continue to be safely and efficiently delivered to the heart of the Sunderland community.”
The funding deal follows Railpen’s investments earlier this year in the purchase of sustainable office space in Cambridge, a £29m investment in an Oxford business park and a £92m investment sterling in a build to let development in Barking.
JLL represented Railpen in connection with the agreement.