NEWCASTLE MATER HOSPITAL

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design, construct and maintain 165 bed public hospital in Newcastle
  • Provision of the hospital and associated non-clinical services
  • All clinical services provided by the State
  • Constructed by Abigroup (now Lend Lease)
  • 100% equity interest

INVESTMENT FUNDAMENTALS

  • 25 year concession with NSW State Government expiring 2033
  • Constructed in 3 stages, with final completion occuring in June 2009
  • Availability-based payment indexed to CPI
  • Hard facility management services (including all lifecycle maintenance) subcontracted to Honeywell under a full term, fixed price contract
  • Soft FM services contracted to Medirest (part of Compass Group) under a full-term contract
  • Full term debt (rated A1 by Moodys) (No refinancing risk)

KEY RISKS AND MITIGATION

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