Kajima/ACORN consortium reaches financial close on Velindre cancer centre

• International legal practice Osborne Clarke is the lead legal adviser for the consortium

The ACORN consortium, led by Kajima, the pan-European property investor, developer, and asset manager alongside Sacyr, Abrdn and the Development Bank of Wales has achieved financial close for the new Velindre Cancer Centre in Cardiff, Wales. Velindre Cancer Centre is being developed in compliance with the Wellbeing of Future Generations (Wales) Act 2015 and set to become one of the most sustainable hospitals in the UK.

The new hospital is part of Velindre University NHS Trust’s Transforming Cancer Services in South East Wales Programme. It will provide patients and carers with high-quality and sustainable services, delivering the most effective treatments while also leading national and international education, research, and innovation in cancer patient care.

The funding group includes Aviva Investors, Siemens, Sumitomo Mitsui Trust Bank, CaixaBank, Norinchukin, Nomura and Nord/LB.

Sacyr UK has been appointed as the main contractor, and the construction process will start in April. The Cancer Centre is due to open in April 2027.

The investor consortium 'ACORN' includes Abrdn, Kajima Partnerships and Sacyr Concessions. The Welsh Government is also investing in the project through the Development Bank of Wales

The overall Osborne Clarke team was led by partner Chris Wade and Amy Dimond. The Projects & Construction team included: Kristen Harris, Nick Grewal, Yasmin Howes, Charlotte D'arcy, Kendra Perry, Khushal Thobhani and Madeliene Begg. The Project Finance Team was led by Bethan Moore, Dominic O'Brien and Artem Kadikov. The Corporate team was led by Sarah Knight with Rebecca Ewing.

The scheme, which targets BREEAM ‘Excellent’, is designed to be all-electric, supporting low energy demand and low operational carbon. A strategy is in place to reduce site waste through off-site manufacture of components to minimise transportation and create efficiencies in the construction and maintenance of the hospital.

The design has been developed to ensure minimum impact on the site. The landscape strategy aims to retain existing habitats and creating new habitats alongside new landscape spaces, such as an orchard with Welsh apple varieties and a community kitchen garden. The scheme also seeks to create informal play areas and a multitude of walking, cycling and relaxation areas. 

The ACORN consortium was appointed following a public procurement process run by Velindre University NHS Trust, and includes Sacyr, Abrdn, Kier Facilities Services, White Arkitekter, Socotec, Hydrock, Ingho, ICCA, MJ Medical, Turley, Studio Response, Camlins Landscape Architects, RSK, Bureau Veritas, Osborne Clarke, Operis, Howden, Mazars, Cloud Nine, Evolution Infrastructure, Addleshaw Goddard, Marsh, AECOM, Lloyds, Geldards, Pinsent Masons and Artelia. 

Richard Coe, Project Director, Kajima Partnerships, commented: “It is fantastic to achieve Financial Close on this exemplary new hospital, and we look forward to seeing the building take shape during the construction period. The project represents a paradigm shift in sustainable healthcare, providing cutting-edge facilities and treatment in a building that has been designed with sustainable material innovation, community inclusion and a commitment to preserving the environment at its forefront.”

Chris Wade, Head of Projects, Construction Planning and Environment at Osborne Clarke commented: "The whole team here at Osborne Clarke has been delighted to have worked with Acorn through the bidding process and to help achieve financial close. We wish the Velindre University NHS Trust and ACORN every success for the project and its place as part of the health infrastructure for Wales."