Carillion seals deal on £187m Midlands schools programme

A Carillion joint venture has reached financial close on the Midlands priority school building programme, a private finance concession contract.

The new Queen Elizabeth Academy in Atherstone Carillion Construction will build eight schools at a capital cost of £138m.  Carillion AMBS will carry out building maintenance and facilities management over the 25-year life of the concession contract,generating an additional £49m of revenue, approximately, over the full term.

Carillion expects to invest £5.5m of equity in the project. The contract is a public private partnership using the government’s PF2 model.

PSBP Midlands Limited, a special purpose vehicle created by a 50:50 joint venture of Carillion and Equitix will be responsible for the delivery of the schools.

The new schools will be constructed over a two-year period to replaced existing school facilities. These are:

  • Alfreton Grange Arts College, Derbyshire
  • ARK Kings Academy, Birmingham
  • Greenwood Academy, Birmingham
  • Plantsbrook School, Birmingham
  • President Kennedy School, Coventry
  • The Phoenix Collegiate, Sandwell
  • The Queen Elizabeth Academy, Warwickshire
  • Top Valley Academy, Nottingham

Carillion chief executive Richard Howson said the deal was “an excellent example of collaboration between the public and private sectors”.