This article is from the Australian Property Journal archive
AMP Capital has bought the Kalgoorlie-based Eastern Goldfields regional prison redevelopment project from Lendlease and MLC.
AMP acquired the project for its AMP Capital’s Community Infrastructure Fund (CommIF), a public private partnership (PPP) with the Western Australian state government.
The project involves two stages of capital works: the design, construction and commission of a new 350-bed prison and associated infrastructure, which is now commissioned, and then the demolition of the existing 100- bed facility and site remediation, which is underway.
Under the deal, CommIF will hold a concession period of approximately 28 years, which comprises the construction period plus 25 years.
AMP Capital Community Infrastructure fund manager Andrea McElhinney said this project provides long-term, highly predictable cash flows that are underpinned by the WA government.
“It has an attractive risk and return profile that fits perfectly with CommIF’s investment mandate.
“The acquisition also allows CommIF to expand its geographic exposure to Western Australia, providing our investors with further diversification benefit,” she added.
CommIF is currently invested in 13 social infrastructure assets in Australia and New Zealand worth approximately $8.2 billion in enterprise value, including primary, secondary and tertiary education institutions and other assets in the health, justice, defence, water and community sectors.
Australian Property Journal
