LEAP 1

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design, construct and operate 1,395 residential units on 3 bases in NSW and Queensland
  • Constructed by Watpac and facility management by ESS (part of global Compass group)
  • 49.9% quity interest with board representation

INVESTMENT FUNDAMENTALS

  • 30 year concession with Commonwealth Government expiring 2039, commissioned in January 2009
  • Availability-based payment indexed to CPI
  • Diversification through location of facilities
  • Full-term debt (rate A2 by Moodys)

KEY RISKS AND MITIGATION

  • Operating cost – fixed cost contracted to ESS secured by performance bonds, with specialist contract supervision
  • Lifecycle capital – sinking fund established against detailed lifecycle management plan
  • Abatement – abatement passed through to ESS with appropriate performance security package
  • Refinancing – no refinancing required
  • Handover condition – on reversion to Commonwealth mitigated through asset maintenance plan