Esteem consortium is named as the preferred bidder to deliver 17 new or rebuilt schools

Morgan Sindall has announced that Esteem, the consortium it is part of along with investment firm, Robertson Capital Projects and developer the Sewell Group, is the preferred bidder to deliver Hull City's £400m Building Schools for the Future (BSF) programme.

The scheme will see the construction of 17 schools, seven new build and 10 others which will undergo major refurbishments.

Morgan Sindall's construction business, Morgan Ashurst, will be one of the firms charged with delivering the project. Construction work will begin in February 2010 and is expected to complete in January 2014. The work will be worth £200m for Morgan Ashurst.

Morgan Sindall Investments (MSIL) will invest equity and sub-debt of £2.5m into the delivery of the first school and the establishment of the Local Education Partnership. MSIL's overall equity stake in the project will be 26.66%.

Paul Smith, chief executive of Morgan Sindall plc, said: "This award demonstrates Morgan Sindall's continuing strength in the education sector and our ability to deliver projects that require integrated investment and construction capabilities."