AMP Capital has successfully acquired the full equity interest in Hopkins Correctional Centre on behalf of its investors in the AMP Capital Community Infrastructure Fund (CommIF) 1.
The correctional centre, located approximately 200 kilometres west of Melbourne, is an integrated multi-purpose precinct capable of housing up to 798 inmates. The centre was delivered as a Public-Private Partnership (PPP) between Aegis Correctional Partnership and the Victorian State Government.
The PPP project involved the design, construction and financing of a new 452-bed medium-security prison expansion as part of the existing 346-bed prison, as well as the provision of a range of facilities management services across all facilities until concession end in 2037. Custodial services are undertaken by Corrections Victoria on behalf of the Victorian Department of Justice and Community Safety.
CommIF Fund Manager Charles Savage said: “We are excited to secure this attractive opportunity on behalf of our investors. This acquisition is expected to complement the existing portfolio by providing a stable, long-term stream of cash flows underpinned by the high credit quality of the Victorian State Government.”
“I’m especially proud of our team’s efforts in securing this investment despite the difficulties posed by the COVID-19 pandemic as well as the complexity of the transaction,” Mr Savage said.
The transaction prompted the recapitalisation of the project with a combination of new debt and equity, together with the reinstatement of the project’s contracted cash flows. AMP Capital is also working together with the State to increase capacity within the existing precinct through the design and construction of a new 94-bed facility.
“The team looks forward to the opportunity to support the Victorian Government with the proposed infrastructure and accommodation works, leveraging our proven expertise in managing major modifications in partnership with Government counterparties,” Mr Savage added.
CommIF is expected to complete five transactions in 2020 – early 2021, growing the fund to 17 assets. CommIF consists of Brownfield PPP or PPP-like assets across Australia and New Zealand and has an aggregate enterprise value of approximately A$5 billion. These include assets in the education, health, corrections, transport, water and recreation sectors.
About AMP Capital
AMP Capital is a global investment manager with A$189 billion in funds under management as of 31 October 2020. AMP Capital has a heritage and strength in real estate and infrastructure, as well as considerable experience in fixed income, equities and multi-asset solutions. It is 100% owned by AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.
1 Completion of the acquisition is subject to satisfaction of certain conditions in the sale agreement.