AMP Capital acquires Australian prison

The private equity firm is investing via its Community Infrastructure Fund (CommIF), which targets high-yield, brownfield, social infrastructure under across Australia and New Zealand.

This is one of five pipeline transactions expected to be completed by CommIF in 2020 and early 2021, taking the fund’s portfolio to 17 assets worth a combined A$5 billion ($3.8 billion).

Hopkins was founded as Ararat Prison in 1967. The Victoria state government began a major refurbishment and expansion of the site in 2010, but after significant time and cost overruns during construction and the collapse of its joint venture builder, the project was placed into administration. Investors included Commonwealth Bank of Australia, Bendigo, and Adelaide Bank.

Hopkins’ public-private partnership (PPP) had a concession period ending in 2037 and was worth $394 million in 2010. The eventual completion of its expansion program saw the prison add 346 beds to a capacity of 798 inmates. AMP said there were plans to expand the facility by another 94 beds.

“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,” Charles Savage, manager of CommIF Fund, said in a statement.

AMP Capital is a global investment manager with A$189 billion in funds under management as of October. It closed its latest global infrastructure fund with $3.4 billion in commitments, beating a target of $3 billion.

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• Topics
• Australasia
• Infrastructure
• Buyouts
• Australia
• AMP Capital Investors