A Pessina Costruzioni led consortium has closed financing for the PPP project to develop ancillary facilities at the new Avellino hospital in the Campania region of southern Italy.

The €10.3 million (US$13.8 million) financing has been granted by Banca della Campania (BPER) to Avellino Parking & Servizi S.p.A., the special purpose vehicle for the project.

The debt will composed by two tranches:

• Base Facility: € 9.300.000 - Maturity date: 2 July 2030 - Marging: 375 bps
• VAT Facility: € 1.000.000 - Maturity date: 2 July 2017 - Marging: 425 bps

Avellino Parking & Servizi S.p.A. consortium is formed by: Pessina Costruzioni S.p.A. (75.52%), De Vivo S.p.A. (27,38%), and D.A.M. S.p.A. (0,10%). The project was awarded on 13 December 2010. Commercial closure was achieved on 20 November 2012.The total project investment is estimated at €13.7 million (US$14.4 million).

The ancillary facilities to the new Avellino Hospital are being built under a design, build, finance and operate (DBFO) model. The contract for the project is 30 years long for the parking, commercial services and ancillary facilities + 90 years long for the other facilities.

CBA Studio Legale e Tributario (CBA) was acting as deal counsel. CBA's team was led by banking partner Marco Cerritelli, head of project and asset finance practice, assisted by senior associate Valentina Perrone. Roberto Brustia, partner, was involved in connection with the tax matters.

EOS was the technical advisor for the project.

The construction joint venture for the project is formed by Pessina Costruzioni S.p.A. and De Vivo S.p.A. APCOA Parking Italia S.p.A. will be the parking operator.

"This deal was really satisfying to bring to financial close, confirming the consolidation of the position of the law firm in the healthcare sector. Further to Avellino, the law firm advised on the project financing of the four new hospitals in Tuscany (European Healthcare Deal of the Year), the new hospital of Novara and the new hospital of Garbagnate. In addition, the law firm advised the sponsor and the SPV in the acquisition by Barclays Infrastructure Fund of a partecipation in Vimercate Salute S.p.A., one the first ever secondary market deal in Italy in the healthcare sector."