CASEY HOSPITAL EXPANSION PROJECT

SOCIAL (PPP)

ASSET DESCRIPTION

  • Design, construction and maintenance of expansion works of the Casey Hospital in southeast Melbourne
  • Expansion includes 160 new beds, the hospital’s first intensive care unit, six new operating theatres, additional recovery capacity, a new day surgery unit and upgraded pharmacy, pathology and back-of-house areas, more than 300 new staff and public car parks, and a new front entry building that includes education and training spaces for Monash University
  • Constructed by Watpac and facility management by Brookfield Global integrated Solutions (BGIS)
  • Construction to be completed in late-2019

INVESTMENT FUNDAMENTALS

  • 10 year concession with the Victorian State Government, to align with the expiry of the concession on the Casey Hospital PPP (2029)
  • Availability-based payment (with < 3.0% car park and retail revenue)
  • Abatement risks passed down to BGIS
  • State funded capital contribution, with no debt

KEY RISKS AND MITIGATION

  • Operating cost – fixed cost contracted to BGIS secured by performance bonds
  • Lifecycle capital – fixed cost contracted to BGIS, with refurbishment payment from State
  • Abatement – abatement passed down to BGIS
  • Refinancing – no refinancing required
  • Handover condition – on reversion to State mitigated through asset maintenance plan and BGIS bonding