CASEY HOSPITAL

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design, construct and maintain 229 bed public hospital in Berwick, Melbourne
  • Provision of the hospital and associated non-clinical services (largely building maintenance and security)
  • Constructed by Multiplex Constructions and facility management by Brookfield Multiplex Services
  • 49.9% equity interest with board representation

INVESTMENT FUNDAMENTALS

  • 25 year concession with  Victorian State Government expiring 2029, commissioned in September 2004
  • Availability-based payment indexed to CPI (with 2% car park revenue)
  • Abatement risks based to BMS, operated abatement free since operational commencement
  • Full-term debt (rated A2 by Moodys)

KEY RISKS AND MITIGATION

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