Castlegate Projects Logo

 

Are you an NHS provider in need of new building?

Then ZCap®, the approved Zero Capital Model from
Caste Gate Projects could be just what you’re looking for.

This market-leading agreement has been structured to
maximise the benefits to our partners…

  • SPV Company formed and majority owned by the public body
  • Public body has control and governance over asset
  • SPV share the development costs, design fees etc, can be included into funding model
  • No requirement for public sector investment, but can be accommodated
  • SPV would develop the facility supported by a private investment fund agreement
  • Public body head lease allowing sub leases or occupation licences for building flexibility
  • 25 year lease on or below DV valuation with 3 yearly upward rent increases linked to RPI
  • Flexibility in the choice of lease structure
  • SPV will own the property and share SPV dividends between shareholders

The ZCap® NHS model:

Special Purpose Vehicle (SPV) property company formed,
majority owned by the NHS Partner(s)

  • The NHS Partner has full control of use over the asset for healthcare purposes
  • No requirement for NHS Partner funding, but this can be accommodated
  • Flexibility in the type of lease to suit the NHS Partner(s)
  • Index-linked lease would be at or below DV valuation and fully recoverable
  • Development funding underwritten by NHS or included in agreement to lease
  • The SPV funds the development via already-negotiated, competitive fund provider
  • SPV will own the property sharing any long-term investment returns with NHS Partner
  • Full SPV and building management service can be provided
  • Castle Gate Projects’ professional team would develop the facility
  • Castle Gate Projects’ finance team would provide financial management services to the SPV
  • NHS partners can reduce lease payments / term with future capital from grants or land sales