Amber Green delivers £12 million investment in St George's Hospital, Tooting
Amber Green (“Amber”), the manager of the London Energy Efficiency Fund (“LEEF”), has reached financial close on a £12m loan agreement for St. George’s Hospital in Tooting, London.
The St. George’s Hospital loan agreement will finance an Energy Performance Contract (“EPC”) between St. George’s NHS Healthcare Trust (“the Trust”), British Gas and London-based partner, Breathe Energy.
The initial capital outlay for the installation of low carbon technologies will be financed through the costs identified in the EPC, allowing one of the UK’s largest teaching hospitals to instead invest savings into critical medical care, training and research facilities. It will reduce St. George’s Hospital’s energy cost spend by 25% and cut over 6,000 tonnes of carbon emissions per annum - equivalent to removing over 3,000 cars from the road. The EPC will make a net saving of over £1.02m per annum to the Trust during its 15 year life.
The transaction is the second largest EPC delivered through Essentia’s procurement framework. The value of the EPC is one of the largest for any London-based NHS entity and one of the largest EPC health projects in the UK.
Launched in 2011, LEEF is funded through £50m of public investment from the European Regional Development Fund, the Mayor of London and London Waste and Recycling Board and matched with up to £50m additional funding from RBS. LEEF has supported a number of the Mayor’s sustainability objectives through investments in both public and private energy efficiency projects across London’s boroughs and is seeking further investments in the Capital.
Leo Bedford, Director of LEEF at Amber Green said: “We are pleased to have secured funding for another vital energy efficiency project which will bring significant benefits to a local London community. St George’s Tooting is the first NHS trust to receive LEEF funding, underlining the Fund’s support for a diverse range of projects aiming to reduce carbon emissions and drive significant savings across the Capital.”
Eric Munro, Joint Director of Estates & Facilities at St George’s Healthcare NHS Trust and St George’s University of London, said: “Both of the St George’s institutions are looking forward to enjoying the long term value for money and carbon reduction delivered by the British Gas energy performance contract, as funded by LEEF. In the current economic climate, it is vital that we maximise the resources that we are able to put into both patient care and student experience. We are also very conscious of our environmental footprint and this project will go a long way to reducing our carbon impact.”
Mike Chessum, Head of Energy Construction Services at British Gas, said: “Working alongside the St. George’s Healthcare NHS Trust, we have reviewed their estate and put in place a bespoke plan to help dramatically reduce energy costs and carbon emissions. These savings are effectively guaranteed by the contract and means the Trust can make a positive return on their investment.
This is one of many EPCs that British Gas is working on with the NHS, demonstrating our commitment to reducing energy costs in the public sector.”
LEEF was advised by Osborne Clarke (legal); British Gas by Breathe (EPC design and procurement); the Trust by DAC Beachcroft (legal), Turner & Townsend (Technical) and Essentia (procurement).
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Mitch Barltrop +44 (0)20 3727 1039
Notes to Editors:
JESSICA, the European Union’s Joint European Support for Sustainable Investment in City Areas, supported by the European Investment Bank, tackles the public sector’s limited access to capital by using private sector expertise and funding to achieve key urban development goals and long-term savings.
About the London Energy Efficiency Fund
Launched in September 2011, LEEF is funded through £50m of public investment from the European Regional Development Fund, the Mayor of London and London Waste and Recycling Board, and up to £50m from The Royal Bank of Scotland (RBS). LEEF aims to be fully invested by 2015.
The fund is managed by the Amber Green Consortium, which comprises the lead sponsor and manager Amber Infrastructure, RBS (as funder) and Arup (as technical advisor).
About Amber Infrastructure Group
Amber Infrastructure Group (Amber) is a leading international infrastructure specialist, providing asset management and investment advisory services in respect of over £4 billion of assets in the UK, Europe, Australia and North America. Amber’s core business focuses on sourcing, developing, advising on, investing in and managing infrastructure assets within the utilities, PPP, transport, renewable energy and regeneration sectors.
Amber provides investment advisory services to International Public Partnerships Limited as well as private investment funds, specialising in urban regeneration and energy efficiency. Amber is headquartered in London with offices in Munich, Sydney, Melbourne and San Francisco and employs approximately 70 people, making it one of the largest international infrastructure specialists.
Amber Green is the specialist brand and team created by Amber Infrastructure Limited to advance Amber’s work in the energy, renewable, regeneration and sustainability arenas.
Essentia combines commercial focus with NHS values to put innovative, tailored solutions into action. Essentia’s unrivalled NHS experience helps public sector clients all over the world become even more efficient and effective.
Essentia has developed an Energy Performance Contracting service to help NHS Trusts and other public sector organisations to improve energy efficiency and save money. Working closely with clients, Essentia procure a bespoke Energy Performance Contract from an energy savings company This company then designs, builds, operates and funds (if necessary) an energy savings programme which will deliver a guaranteed reduction in energy and financial cost, as well as in carbon footprint. http://www.essentia.uk.com
About British Gas
British Gas is the UK's leading energy supplier, and serves around 11 million homes in Britain –nearly half the country's homes – as well as providing energy to around half a million UK businesses. British Gas provides value for money, dedicated customer service, innovative energy solutions and the highest quality Home Services expertise in the country. Find out more at www.britishgas.co.uk.