Bovis bags £170m Leeds hospital

The Catalyst group has moved to the top of the priority list for one of the biggest deals in the third wave of privately financed hospital deals.

The team, comprising Bovis Lend Lease and Sodexho, has emerged as preferred bidder for a £170m project to redevelop St James University Hospital in Leeds.

In the final run-in, Catalyst beat off a fierce challenge from Summit Healthcare, headed up by Sir Robert McAlpine.

Leeds Teaching Hospitals NHS Trust was originally expected to select its preferred bidder in February, but the decision was delayed when the Trust called on the two rival groups left in the chase to provide further clarification of their best and final offers.

The project involves the design, build, finance and maintenance of a medical and surgical oncology wing. The complex is expected to take about three years to build, with the maintenance concession running for 30 years.

Financial close is expected around September, with a start on site due shortly afterwards.