UK house-building and construction group Galliford Try’s business Morrison Construction has reached a financial close on the £45.2m Hub South East Scotland contract for NHS Lothian.

Under the contract, Morrison will build and operate the first phase of redevelopment for the new Royal Edinburgh Hospital, a psychiatric hospital in Scotland.

The company will carry out construction of a new 15,500m² specialist mental health facility on the western edge of the existing campus in Morningside, Edinburgh.

"We are pleased to be selected for this significant health project for NHS Lothian."

A new national brain injury unit will be incorporated in an adjacent building to replace the existing Robert Fergusson Unit.

Galliford Try executive chairman Greg Fitzgerald said: "Our relationship with Hub South East Scotland Limited is an important element of our Morrison Construction business in Scotland and we are pleased to be selected for this significant health project for NHS Lothian.

The project will receive £2.2m investment from Galliford, which will also offer ongoing hard facilities maintenance and lifecycle management services in a contract worth around £18.5m over the 25-year concession period.

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"We look forward to successfully delivering this project for our client and wider stakeholders, and in turn provide the local community with an enhanced built environment and improved facilities," Fitzgerald added.

Galliford’s construction business carries out building and infrastructure work across the UK with clients ranging from major government departments through to regulated utilities and private sector companies.