Circle Secures GBP50M Funding for Second New-Build Hospital

By Circle, PRNE
Wednesday, December 8, 2010

LONDON, December 9, 2010 - Circle, the employee-owned partnership of clinicians, has today secured
GBP50m to fund its second new-build hospital - CircleReading.

In a deal that signals a breakthrough in the UK development
finance freeze, the site for the hospital has been purchased by the real
estate investment arm for BP's pension fund, Ropemaker Properties, who will
also provide financing for the construction.

CircleReading marks another milestone in Circle's programme to
build and operate a new generation of state-of-the-art hospitals across the
UK. Circle opened its first new-build hospital - CircleBath - in March 2010.
CircleBath has proved its concept to deliver a new style of patient
experience to both private and NHS patients - combining award-winning
building design with high quality clinical care and five-star hospitality.
CircleReading will follow the same patient-centric model and is due to open
to the public in Autumn 2012.

Coming on the back of their selection as the preferred partner
to run Hinchingbrooke hospital - the first NHS hospital to be franchised to
the independent sector - last week, the development of CircleReading confirms
that Circle's ambitious expansion strategy is on track.

Ali Parsa, Circle's Managing Partner said: "Circle was founded
to redefine healthcare delivery in this country. Patient and GP reaction to
our first hospital - CircleBath - has been phenomenal. We have now set our
sights on transforming the hospital experience and quality of care available
to patients in Reading."

Tim Hayne, of Ropemaker Properties said:"We are very pleased
to be able to facilitate the development of the latest Circle hospital."

Dominic Reilly, of King Sturge Finance said:"King Sturge
Finance is delighted to have achieved a successful financing solution on
behalf of Circle and to be working with Ropemaker Properties on such an
innovative and exciting real estate project"

Notes to Editors:

1. Circle forms the largest partnership of clinicians in Europe and is
co-owned and managed by all the doctors, nurses and staff who work in
Circle's hospitals, treatment centres and clinics.

2. CircleReading will be located in Southside Reading, next door to the
Madejski Stadium, home to London Irish rugby club and Reading Football FC.
The hospital will provide 9,000 square metres of accommodation, providing 5
operating theatres, 30 private, en-suite inpatient bedrooms and 18
day-surgery beds.

3. Circle was advised by King Sturge Finance on the acquisition and
development financing. Vinci will be the main construction contractor and
building works will commence in January.

4. CircleBath is a 6,500 square metre hospital with 4 operating theatres,
30 private, en-suite in-patient bedrooms and 18 day-surgery beds. Since it
opened in March 2010, CircleBath has consistently delivered high-quality
clinical outcomes, with no returns to theatre, zero infection rates, and
every surgical procedure filmed to facilitate a culture of complete patient
safety. Treatment is delivered in the first Norman Foster designed hospital
in the world, described by The Observer as 'one of the finest hospitals in
Britain', and recently voted 'Best Building in Britain', beating off stiff
competition from the Victoria & Albert Museum, the UK Supreme Court and 23
Savile Row, Mayfair. Hospitality services are designed by the team that
brought Mandarin Oriental into the UK, and delivered daily by former
five-star hoteliers. Food is cooked by a chef previously from a
Michelin-starred restaurant. 995 patients out of 1000 would recommend
CircleBath to friends and family, with many describing the experience as
their best ever at a UK hospital.

5. Additionally Circle operates and manages the Nottingham and Midlands
NHS Treatment Centres, on behalf of the NHS, where Circle treats around
137,000 NHS patients per annum and delivered over 20% productivity
improvement during its first year of operation.

6. Circle also owns and runs two surgical clinics in Windsor and

7. Circle plans to build up to 30 hospitals across the UK over the coming

For further information please contact Christina Lineen at Circle on +44(0)7972-192845

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