Contractor Sacyr UK will now start work on the 368,000 sq ft specialist cancer hospital, which is being bought forward using the Welsh Government’s new public private partnership model.

Velindre University NHS Trust appointed the ACORN consortium to deliver the project 18 months ago.

Under the Mutual Investment Model agreement ‘soft FM’ services would be retained by the contracting authority and elements of ‘hard FM’ services would be carried out by Kier Facilities during the operational phase of the contract. The Trust will take a stake of up to 15% in the project.

The project, which targets BREEAM ‘Excellent’, is designed to be all-electric, supporting low energy demand and low operational carbon.

Mass timber will be used in lounge, radiotherapy and waiting areas.

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, led by White Arkitekter, has been developed to ensure minimum impact on the site.

Richard Coe, Project Director, Kajima Partnerships, said: “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.”

The Cancer Centre is due to open in April 2027