SOUTH AUSTRALIAN POLICE AND COURTS

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design, construct and operate 5 police stations and 4 court houses across 6 locations in regional South Australia
  • Constructed by Hansen Yunken
  • Internalised facility management function, subcontracted major services
  • 49.9% equity interest with board representation

INVESTMENT FUNDAMENTALS

  • 25 year concession with SA State Government, expiring 2030
  • Sites operational since 2006, operating abatement free since commencement of services
  • Availability-based payment indexed to CPI, with schedules capital replacement profile
  • Freehold title to land and facilities
  • Full-term debt (rated A3 by Moodys)

KEY RISKS AND MITIGATION

  • Operating cost – simple FM and service obligations subcontracted to various providers
  • Lifecycle capital – detailed lifecycle management plan updated annually
  • Abatement – Cure period provides buffer against abatement
  • Refinancing – no refinancing required
  • Residual value – option to re-lapse by SAPOL subject to negotiation on expiry of concession term, ability to conform to non-SAPOL uses in major regional centres