PE-backed Royal Adelaide Hospital set for construction

According to a statement, the Royal Adelaide Hospital will be one of Australia's most advanced medical venues and is the single-largest infrastructure project in South Australia's history. The project has garnered more than A$300 million ($320 million) from private equity investors, including InfraRed Capital Partners Limited, Leighton Infrastructure Investments, John Laing Investments, Lloyds Bank Corporate Markets and Macquarie Capital Group. Meanwhile, the SA Health Partnership has raised more than A$2.5 billion ($2.6 billion) in long-term debt from a group of 15 Australian and international banks.

Aside from being financed by the SA Health group, the hospital will be designed, built and operated by the consortium, which includes Leighton Contractors, Macquarie Capital, commercial builder Hansen Yuncken and services-management firm Spotless. The consortium will manage the project for the next 35 years.

According to local media reports, the hospital will cost A$2.1 billion ($2.2 billion) to construct, up from the A$1.7 billion ($1.8 billion) government officials initially cited. The hospital is slated to open in 2016, at which point the Australian government will begin paying A$397 million ($423.6 million) to the hospital's private backers annually until 2046.

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• Topics
• Australasia
• Healthcare
• Macquarie Group