ASSET DESCRIPTION
- Concession to design, construct and maintain 229 bed public hospital in Berwick, Melbourne
- Provision of the hospital and associated non-clinical services (largely building maintenance and security)
- Constructed by Multiplex Constructions and facility management by Brookfield Global integrated Solutions (BGIS)
- 49.9% equity interest with board representation
INVESTMENT FUNDAMENTALS
- 25 year concession with Victorian State Government expiring 2029, commissioned in September 2004
- Availability-based payment indexed to CPI (with 2% car park revenue)
- Abatement risks passed down to BGIS, operated abatement free since operational commencement
- Full-term debt (rated A2 by Moodys)
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
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