Railpen to fund development of new mental health facility in Sunderland
Railpen has announced it is to fund the redevelopment and extension of an existing mental health facility in Sunderland for the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust.
Railpen, one of the largest pension managers in the UK, has announced it is to fund the redevelopment and extension of an existing mental health facility in Sunderland for the Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust. The Trust has signed a 30+ year lease on the site, delivering long-duration inflation-linked returns for Railpen’s members. The redevelopment is being undertaken by Monkwearmouth Development Limited (a joint venture between Argon Property Development Solutions Ltd and Sir Robert McAlpine Capital Ventures Limited).
Replacing an existing outdated building at Monkwearmouth Hospital, the development will create a 35,000 sq ft state-of-the-art facility that will allow the NHS Trust to provide a significantly enhanced range of specialist services for the local community. The development will remove a number of old, out-dated and expensive to run buildings, many of which are no longer used by the Trust yet require costly ongoing maintenance.
The funding of the development is an outcome of Railpen’s commitment to sustainable ownership, which considers environmental, social and governance factors in all investment decisions. The new hospital will help drive social value and improve health and wellbeing in the community, which are key aims of Railpen’s strategy.
Julian Allport, Investment Manager at Railpen, said: “The creation of new mental health facility to provide greater and better support to patients is a key initiative for the Sunderland community, and one that meets all of Railpen’s strategic investment criteria. The new facility will help more people than the one it replaces, create a much improved environment for staff and patients, and deliver long-term returns for our members. It is exactly the type of socially responsible and sustainable investment we are seeking.”
James Duncan, Chief Executive at Tyne and Wear NHS Foundation Trust, 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 delivered safely and effectively in the heart of the community in Sunderland.”
Work on the new hospital began this month and the construction is being managed so as to minimise disruption to the provision of services to patients.
JLL acted for Railpen.