ASSET DESCRIPTION
- Design, construction and maintenance of expansion works of the Casey Hospital in southeast Melbourne
- Expansion includes 160 new beds, the hospital’s first intensive care unit, six new operating theatres, additional recovery capacity, a new day surgery unit and upgraded pharmacy, pathology and back-of-house areas, more than 300 new staff and public car parks, and a new front entry building that includes education and training spaces for Monash University
- Constructed by Watpac and facility management by Brookfield Global integrated Solutions (BGIS)
- Construction to be completed in late-2019
INVESTMENT FUNDAMENTALS
- 10 year concession with the Victorian State Government, to align with the expiry of the concession on the Casey Hospital PPP (2029)
- Availability-based payment (with < 3.0% car park and retail revenue)
- Abatement risks passed down to BGIS
- State funded capital contribution, with no debt
KEY RISKS AND MITIGATION
- Operating cost – fixed cost contracted to BGIS secured by performance bonds
- Lifecycle capital – fixed cost contracted to BGIS, with refurbishment payment from State
- Abatement – abatement passed down to BGIS
- Refinancing – no refinancing required
- Handover condition – on reversion to State mitigated through asset maintenance plan and BGIS bonding
Visit the Casey Hospital Expansion Project website
