Work has started on a new £32 million private hospital in Birmingham after a funding deal was agreed with a US investment firm.
Circle Health has entered into agreements with affiliates of Medical Properties Trust (MPT), a US-based real estate investment trust, for the financing and development of the hospital at Pebble Mill.
Under the agreement, listed Circle will sell its long-term lease on the plot to an affiliate of MPT for £2.7 million and MPT will develop the hospital.
Construction of 'Circle Birmingham' is due to be be completed towards the end of 2018 after which the company will enter into a 15-year lease on the building which may be extended.
To be called 'Circle Birmingham', it will have three operating theatres, which is expandable to six, an endoscopy procedure room and 18 in-patient bedrooms.
The firm said the plan was then to add a "significant number" of rehabilitation beds for patients with musculoskeletal and neurological conditions alongside rehabilitation facilities.
Paolo Pieri, chief executive of Circle Health, said: "This state-of-the-art hospital will bring to Birmingham the high-quality care and excellent hospitality for which Circle Health is well-known and is an important part of Circle's strategy to add scale to the group.
"The intention is also to add a significant number of beds for physical and neurological rehabilitation along with the latest rehabilitation technology.
"This is an exciting step forward for Circle to further scale its hospital operations in the UK."
Circle Health also operates hospitals in Bath, Reading and Nottingham.
The hospital works will be the latest development at Pebble Mill following the departure of the BBC and the demolition of the old TV studios there.
Bupa is currently on site constructing a 62-bed private care home and the Dental Hospital and School of Dentistry opened last year.
Ralph Minott, development director for Calthorpe Estates which owns the Pebble Mill site, said: "A private hospital was our first approved medical use for Pebble Mill when Calthorpe Estates secured outline approval for this scheme back in October 2010.
"We are now in the position, after many years of planning the vision, to see the various schemes with their outstanding facilities and services taking physical shape in the way we envisioned and these are reinforcing the growing reputation of Pebble Mill at Edgbaston Medical Quarter for healthcare and medical excellence."