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
Visit the Newcastle Mater Hospital website
