Treasury explores VAT relief

The education sector is a strong target for banks and financial institutions keen to take part in the PFI, according to survey by Greenwich University and Chesterton, the property consultant, writes Kam Patel.

Of 65 banks and financial institutions questioned as part of a property lending survey, almost two-thirds were considering lending to a PFI project. Twenty per cent said education projects were most attractive to them, behind health (30 per cent) and government offices (23 per cent) but ahead of other types of project. When asked how much they might consider lending to a PFI project, a third said Pounds 5-10 million. 26 per cent indicated that they would lend less than Pounds 5 million, while another quarter would consider providing Pounds 10-25 million. Lenders are reluctant to get involved at the top end of the scale, ranging from Pounds 25-100 million, with only 15 per cent prepared to provide such loans, says the study.