A Sir Robert McAlpine joint venture has been named as the preferred bidder for a £160m contract to build two mental health hospitals and over 800 houses.
The joint venture between Sir Robert McAlpine and developer Kajima Partnerships has been announced as the preferred bidder for South West London and St George’s Mental Health NHS Trust’s (SWLSTG) Estate Modernisation Programme.
It is understood the contract is worth £160m, according to prior information documents published on OJEU in May last year.
Under the deal, two mental health hospitals in south-west London – Springfield University Hospital and Tolworth Hospital – will be built along with 839 houses.
A new school and £5m worth of transport facilities will also be delivered.
The Springfield and Tolworth Estate Partnership (STEP) will work alongside the Trust to develop more detailed plans for the programme and a business case has been submitted to the Department of Health and the Treasury.
Construction is expected to start in spring/summer 2018 subject to programme approval.
The Sir Robert McAlpine JV has beaten five other rivals to the contract.
Kier, Mace, Skanska and Vinci, along with their development partners, were longlisted for the deal in September last year.
Lendlease went in for the contract alone and was also longlisted.
SWLSTG chief executive David Bradley said the announcement of STEP as the preferred bidder marked an “important milestone” in the programme.
He said: “Our staff work hard every day to deliver the best care but our buildings are old and expensive to run.
“It is very important to us that we provide patients with the best facilities and services possible and we are pleased to have found a way to do this through raising our own funds.”
The trust serves 1.1m people across the London boroughs of Kingston, Merton, Richmond, Sutton and Wandsworth and employs more than 2,000 staff.