St Andrew's healthcare charity has negotiated a £52.5m finance deal with Lloyds TSB to fund the expansion of its hospital in Northampton.

The organisation is the UK's largest mental health care charity and leading charity provider of NHS care, offering specialist services for mental health, brain injury, learning disability and progressive and neurodegenerative conditions.

It has four specialist facilities in England, with the 120-acre, 600-bed Northampton facility set to benefit from the finance deal. The funding will be used to build a new 90-bed psychiatric hospital with six units by the end of 2014. The new facility will provide around 400 jobs. 

St Andrew's would not provide full details of the package, but its chief finance officer, Nigel Alcock, told civilsociety.co.uk:

"The  £52.5m funding package that has been developed in partnership with Lloyds TSB reflects the financial strength of St Andrew’s balance sheet. The terms of the deal are very competitive which, combined with a flexible funding profile, makes this an excellent deal for the charity."

He added: “Despite challenging financial forecasts for independent mental healthcare providers, St Andrew’s saw turnover increase by over 5 per cent last year, to £169m. As a charity it is essential that any financial agreements we enter into are right for our long-term commitment to care for as many people as possible. We are in a very different position to some private companies, and that’s why we believe that the charitable model offers huge potential for the sector.

“This funding agreement will help St Andrew’s maintain the great results we have achieved by reinvesting in the future of mental healthcare over the last few years. We are delighted to have finalised the deal with Lloyds, who have been fantastic to work with.”