MTH GROUP: MT Højgaard to build new bed unit at Slagelse Hospital

Region Zealand and Slagelse Hospital have selected PPP partners for the construction and future operation and maintenance of a new 140-bed maternity ward and bed unit, a contract valued at more than DKK 500 million.

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The new building at Slagelse Hospital will have maternity wards on the ground floor and two additional storeys with beds for 140 patients. The building will have a total floor space of 16,000 m2. The Region and Slagelse Hospital also requested an option to add a third storey to the building. The new building is scheduled for opening by the beginning of 2018.

In addition to the construction of the new building, the contract involves a 20-year public-private partnership on exterior facility management and maintenance. MT Højgaard is the design and build contractor, and DEAS will provide facility management services. The company to operate the new building will be owned equally by MT Højgaard and DEAS. The financial partners that will own the building are the four pension funds PKA, Sampension, PensionDanmark and Industriens Pension. In the call for tenders, Region Zealand and Slagelse Hospital emphasised project finance, the quality of construction and related services and the financial strength of the partners selected.

- We're proud of being chosen for this important project. Slagelse Hospital and Region Zealand are very ambitious in their vision for patient care while also emphasising the overall financial framework. Together with our partners, we look forward to this professional challenge, providing a building and the future management and maintenance services in line with the high standards expected of us, said Project Director Joan Clausen of MT Højgaard.

The new project in Slagelse is the latest in a large number of hospital projects that MT Højgaard is currently involved in all over Denmark. The construction and operate contract has a current value in excess of DKK 500 million, although the total amount depends on whether or not the option for a third floor is exercised. Most of the contract sum relates to MT Højgaard's role in the project. The contract is awaiting the region's final approval.

Accordingly, the project is expected to have a positive effect on MT Højgaard's consolidated revenue and earnings during the term of the project, but it will not affect the company's current financial guidance. Forward-looking statements are inherently subject to risk and uncertainty which may cause actual developments to differ materially from the guidance provided.

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