AMP Capital buys West Australian prison
AMP Capital has purchased a Kalgoorlie-based regional prison redevelopment project as part of its community infrastructure fund (CommIF).
The fund manager purchased the West Australian prison in public private partnership (PPP) with the Western Australian state government, from Lend Lease and MLC.
AMP Capital Community Infrastructure fund manager, Andrea McElhinney, said the project provided long-term highly predictable cash flows, underpinned by the West Australian government.
It had an attractive risk and return profile which fit perfectly with CommIF's investment mandate and allowed the fund to expand to Western Australia, which provided investors with further diversification, she said.
The project involved constructing a new 350-bed prison and demolishing the existing 100-bed facility.
The enterprise period was estimated to be a total of 28 years, which included construction time, plus 25 years, AMP Capital said.
The CommIF fund currently invested in 13 social infrastructure assets in Australia and New Zealand, worth a total $8.2 billion. Those assets included primary, secondary and tertiary education institutions, as well as assets in health, justice, defence, water, and community services.
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
