AMP Capital’s Community Infrastructure Fund secures additional stake in the Royal Adelaide Hospital
AMP Capital has successfully acquired an additional 9.95 per cent in the Royal Adelaide Hospital (RAH) on behalf of investors in its Community Infrastructure Fund (CommIF), taking its total interest in the facility to 27.21 per cent.
The acquisition reached financial close on 23 July 2021 and follows the recently completed $2.2 billion refinancing of the PPP.
The 800-bed RAH, delivered as a Public-Private Partnership with the South Australian Government, is one of Australia's most advanced hospitals and energy-efficient medical facilities. The hospital is operated by SA Health and combines clinical services, training and research facilities to deliver high quality and complex patient care.
CommIF Portfolio Manager Charles Savage said: "We are delighted to increase our stake in this landmark facility. The hospital is the state's centre for major emergencies and management of the ongoing global pandemic, providing an essential service to its community. It is a great fit for the CommIF portfolio.
"CommIF investments have helped develop and support critical health infrastructure across Australia including the Royal North Shore Hospital and Victorian Comprehensive Cancer Centre while delivering robust returns for investors.
"We are extremely proud of our ability to partner with all stakeholders to deliver high-quality health infrastructure to the community while serving the needs of our investors,” Mr Savage said.
AMP Capital Managing Director – Origination Scott Markwick said: "The acquisition continues CommIF's successful strategy of acquiring interests in high-quality assets and follows the Royal Adelaide Hospital PPP's successful $2.2 billion refinancing last week."
The $2.2 billion refinancing was the world’s largest Sustainability Loan in the healthcare sector, and the largest project finance Green and Sustainability Loan in Australia. Sustainability loans are issued by governments, organisations, and companies to exclusively finance environmental and climate projects; and those that offer strong social benefits.
AMP Capital was advised on its additional stake by Minter Ellison and PwC.
CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, justice, water, transport, community housing and recreational facilities. The fund now has 18 assets worth more than A$5.8 billion (on a pro-rata ownership basis).
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