Laing O’Rourke will build the £120m Forum development on the Cambridge Biomedical Campus after a joint venture between John Laing and Cambridge University Hospitals NHS Trust was agreed, HSJ sister title Construction News has reported.

The Forum development will include a post-graduate medical education centre, a private hospital, a 198-room hotel and a 55-seat conference centre.

Construction is due to start in spring 2014 after planning permission has been secured and funding finalised.

Private funding for the £120m project will be arranged by John Laing and no public capital will be used to finance the development.

It will be the first major project of its kind for the NHS, with CUH receiving an annual income and a share of the profits over the life of the project to support patient care at other hospitals.

The development will create over 300 construction jobs and more than 500 people will be employed in the completed facility, with the private hospital to be run by Ramsay Health Care UK.

John Laing director of healthcare projects Peter Ward said: “John Laing is keen to invest sustainably in good quality public infrastructure, and the Forum is a great example because it will provide a social hub for the biomedical campus, give Cambridge a centre for postgraduate medical education that reflects the standards of its teaching, and generate substantial income for NHS care.

“It’s a crucial part of the CUH’s vision, and will illustrate the potential benefits innovation can bring to CUH’s patients and the staff who care for them.”

The Forum is expected to open in summer 2016.