PwC Lead Advisory advises Velindre University NHS Trust on new Velindre Cancer Centre project

The PwC Lead Advisory team has advised Velindre University NHS Trust (the “Trust”) on the appointment of the Acorn consortium, led by Sacyr Infrastructure UK Ltd, Kajima Partnerships Ltd and Abrdn, to deliver the new Velindre Cancer Centre project in Cardiff. The new cancer hospital will help the Trust to meet future demand for cancer services in Wales and will enhance the patient, carer and staff experience. 

The project will be delivered using Welsh Government’s Mutual Investment Model (MIM), a model for delivering off balance sheet, revenue funded infrastructure investment. The Acorn consortium has raised senior debt via a long term fixed rate institutional investor facility and a long term floating rate commercial bank facility with associated hedging. An equity investment by the Welsh Government (through the Development Bank of Wales) will enable the public sector to participate in any return on investment. 

PwC provided a wide range of services on the project. These services included advice on the statistical classification of the project, assistance with the preparation of the business case and value for money assessments, accounting advice, and support during commercial negotiations. 

The appointment of a consortium on the new Velindre Cancer Centre project is the third project for which the Welsh Government has utilised the MIM structure and follows the A465 Sections 5&6 road project and the 21st Century Schools and Colleges Programme. PwC has advised on all MIM schemes from inception to contract award. 

The PwC Lead Advisory team on the project included Zoe Watters, Dan Edge, Andrew Brown, Anah Karim and Rob McDowell. Adam Timmins and Adam Kite from PwC Tax and Sarah Connell and Martinus Budiman from PwC CMAS also provided specialist support.