Japanese firm takes Portsmouth Hospital stake

A Japanese company has bought a share in the Queen Alexandra Hospital (QAH) PFI project from InfraRed Capital Partners.

Credit: Getty

InfraRed has agreed to sell a 44% stake in the hospital scheme to MM Capital Partners, a Japanese infrastructure investment manager controlled by Marubeni Corporation.

QAH is a major acute hospital in Portsmouth that had previously been delivered by Carillion under a PFI deal. However, when Carillion collapsed, a newly incorporated special purpose vehicle was established to continue the project. In April 2021, monoline insurer Assured Guaranty provided a wrap on the £327m bond underpinning the deal.

The project has been on an upward trajectory in recent years, and last month ratings agency Moody's changed its outlook on the bonds underpinning the PFI project to positive, citing a “growing track record of satisfactory operational performance”.

Commenting on the project, InfraRed partner Dulce Mendonça said: “We are committed to continuing to support QAH to deliver for this community, through our active management and strong relationships with stakeholders.”