AMP Capital has declared the news of buying 100 per cent interest in Sydney’s Royal North Shore Hospital Public Private Partnership (PPP) project from Royal Bank of Scotland (RBS).
According to The Australian’s sources the value assumed to be up to $1 billion though the value of the deal is not revealed.
Under the deal, AMP will possess the asset until October 2036, with 70 per cent of the equity bought by AMP Capital’s Community Infrastructure Fund (CommIF) and the remainder by AMP Capital managed investors. It will be CommIF’s 11th social infrastructure asset in Australia and New Zealand.
AMP’s head of social infrastructure & aged care Julie-Anne Mizzi said “Investors like social infrastructure assets because of the limited or no demand risk; stable, government-backed, inflation-linked returns; attractive yield and low volatility; and the fact these investments have a positive community benefit.”
The PPP project involved renovating the hospital and its associated health services to supplant more than 50 outdated buildings with facilities furnished with the latest technology.
The Bank of Tokyo-Mitsubishi UFJ counseled AMP