HEALTHCARE consortium Synchrony is confident it can build its co-located private hospital at St James' Hospital in Dublin despite the financial difficulties of property developer Paddy Kelly.

It emerged last week that Kelly, who has been repeatedly linked with the project, is considering entering into a bankruptcy arrangement with his creditors.

Although the company has declined to comment publicly, sources said Kelly has no formal financial link with the project. It is understood he owns none of the company's share capital and was involved only through his role as an investor in Boundary Capital, which owns 60% of Synchrony.

"Paddy was just one potential investor involved. The press picked up on his name because he is such a high-profile individual," said a source.

Sources said the company hoped to start construction within the next 12 months, subject to planning.

Meanwhile, a second healthcare firm linked to Kelly has revealed the developer is no longer involved with it. Charter Medical, which runs a Hibernian-branded clinic in Smithfield, Dublin, said Kelly sold his stake to management last September.