UME have been an essential part of the planning and design team that have translated our vision for primary care
and community services into Health and Well-Being Centres that will be fit for purpose for the future.
Andrew Ridley
Director of Primary Care
Tower Hamlets PCT
Director of Primary Care
Tower Hamlets PCT
New 4 OldCare centres for older people, Croydon
How UME made a difference
The consortium and our funder AIB, have combined the elements of care centres, residential housing and funding. This is ratified by direct agreements and contracts.The residual value is driven not by the value of the land or buildings, but the amount that can be funded at the end of the concession by the RSL.
Tenants rents will only be paid to the RSL after the concession has ended and so the RSL are only able to pay a certain amount as a bullit.
The loan directly from the bank to the RSL is linked to the main PFI (some funding for its repayment comes from the Unitary tariff). This means that any default by the RSL on the residential building leads to default of ProjectCo on the main PFI. To mitigate this, careful drafting of default, cross default, etc has been done to protect all parties.
The equity is split 50:25:25 between UMEI/Osborne/RSL, but the subdebt is split 75:25 between UMEI/Osborne. The RSL made a contribution in terms of grants and investment into the property and receives a 125 year lease with a commercial return net of tax as compensation.
