LEAP2

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design, construct and operate 3,020 residential units on 14 bases in 7 states/territories
  • Constructed by 5 builders. Completed in February 2014
  • Facilities management by ESS (Compass Group)
  • 49.9% quity interest with board representation

INVESTMENT FUNDAMENTALS

  • 30 year concession with Commonwealth Government expiring 2044
  • Availability-based payment indexed to CPI
  • Abatement risks passed to ESS
  • Diversification through location of facilities
  • 5 year senior debt facility with conservative refinancing assumptions

KEY RISKS AND MITIGATION

  • Risks largely the same as LEAP1
  • Operating cost – O&M obligations fully passed through to ESS with limited lifecycle cost risk retained
  • Abatement – passed through to ESS with appropriate performance security package
  • Specialist contract management and detailed lifecycle management plan
  • Refinancing – conservative refinancing assumptions