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LEAP 2 PPP refinances five year debt tranche

December 2020.

Sydney, Australia – Palisade Investment Partners (Palisade) is pleased to announce the successful refinancing of a $92 million, five year debt facility for the LEAP 2 defence housing Public Private Partnership (LEAP 2).

The debt facility was refinanced with incumbent lenders Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB).

The refinanced facility is one of three debt facility tranches, sitting alongside a 10-year and a 15-year tranche.

Palisade Executive Director Vicki Rigg said: “The refinancing outcome reflects the quality of the LEAP 2 asset. The facility further de-risks the capital structure of LEAP 2, whilst at the same time achieving attractive pricing and terms for investors.”

LEAP 2 was advised by Plenary Group, Allens, PWC and Enegue whilst ANZ and NAB were advised by White & Case. The Commonwealth was advised by KPMG and Ashurst.
The transaction is a successful example of Palisade’s active approach to treasury risk management, which seeks to manage refinancing risk by targeting diversity of funding tenor and source across its portfolio.

Palisade manages a 49.9% interest in LEAP 2 on behalf of Palisade’s Australian Social Infrastructure Fund (PASIF), alongside Caisse de dépôt et placement du Québec (CDPQ) and Plenary Group.

PASIF has provided investors with a total return of 11.4% p.a., including 9.6% p.a. of income before fees over the five years to 30 November 2020.

For further information, please contact:

James Ward
Investment Director
Palisade Investment Partners
Ph: +61 2 8970 7814
james.ward@palisadepartners.com.au

Download the full Media Release here

About LEAP 2
LEAP 2 is a Public Private Partnership (PPP) with the Commonwealth Government of Australia. The PPP provides a 30-year concession to design, construct and operate 3,020 residential units on 14 defence bases across seven Australian States and Territories.

For further information, visit: http://www.palisadepartners.com.au/