Sandwell and West Birmingham NHS Trust has developed two new multi-storey car parks, which now provide easier access to its hospitals and can meet higher demand from patients. The project sets a positive example on how to access much-needed capital funding, free up additional land and benefit from outsourced services.

The car parks create additional parking space in the most efficient way

The six-storey car park at City Hospital provides 550 parking spaces, while the four-storey car park at Sandwell General Hospital offers 400. The new car parks benefit from a traffic circulation model with clearer navigation, as well as accessible parking, electric vehicle charging spaces and cycle bays.

Our advice makes a difference

The Capsticks team, led by real estate partner Henry Matveieff and commercial and construction partner Lee Clarke, advised the Trust on this multi-million pound deal to design, finance and build the multi-storey car parks and to find a car park operator to manage all of the Trust’s parking arrangements.

Our experts worked closely with the Trust to optimise:

The funding solution

We supported the Trust in building a partnership with the developer Prime plc to deliver a scheme that did not require NHS capital and also provided the Trust with income and a capital receipt.

Use of sites

The project not only enabled the Trust to gain new, much needed parking facilities, but also a new source of income. The new multi storey car parks have also freed up large areas of the hospital sites that were previously used for car parking and created opportunities for future development, which is now planned on the sites. This in turn will allow the Trust to use this excess land in order to offer a broader range of healthcare services to its patients. The car parks also improve the overall experience of visiting and working at the hospitals.

Outsourcing of functions

As part of the arrangements, we helped the Trust negotiate a deal for the outsourcing of its car parking operations across all its sites to Q-Park, a leading car park operator. The contractual arrangements were complex, and our team worked closely with the Trust in all the commercial negotiations to help the Trust achieve its objectives.

We also identified and dealt with critical issues central to the project, and were able to negotiate directly on the Trust’s behalf on contractual matters, including the heads of terms, the development agreements and operating contracts.

How to make car park developments work for you

Getting the right funding for your project

We know how difficult it is to secure precious NHS capital (particularly for car parking), so we can advise on alternative structures and options for financing your project.

Master-planning your sites

If you, like many NHS trusts, have sprawling sites but find it difficult to accommodate additional development due to pressure on existing car parking, we can work with you and your planning consultants to help you optimise space and development opportunities.

Outsourcing functions

While new developments come with lots of benefits, managing the additional functions they create is a different story. We have a team of procurement and commercial experts to assist you with comprehensive outsourcing arrangements, freeing up your time and getting the best value for money.

Understanding CDEL and balance sheet implications

We recognise that IRFS 16 has put additional funding pressures on NHS trusts, by bringing leases onto balance sheets and potentially impacting on trusts’ CDEL limits. We can work with you and your accountants to manage balance sheet issues.

The Capsticks team can help you

As you can see from this case study, there is a lot of potential for NHS trust owned sites to be used more effectively to benefit your patients and employees. We would be very happy to discuss with you how our work on this project and similar schemes could be applied for the benefit of your organisation. Please contact Henry Matveieff or Lee Clarke for further details.