Hopkins Correctional Centre PPP back on the market

27 November 2019 - 12:00 am UTC

The Hopkins Correctional Centre PPP is being sold from receivership for the second time after failing to attract enough interest when marketed last year, according to four sources familiar with the process. 

Several possible suitors have signed non-disclosure agreements for the Victorian prison sale – including two bidders from an earlier auction – said the sources. 

A timeline for the sale process is not yet clear, but one of the sources said it began around six weeks ago. 

Insolvency firm Korda Mentha is running the auction on behalf of its lenders Commonwealth Bank and Bendigo and Adelaide Bank, the sources said.

The AUD 400m (USD 271m) project involved the expansion of the existing medium-security Ararat Prison, about 200km northwest of Melbourne, by 358 beds to a total of 740.

The 25-year PPP originally reached financial close in June 2010, but hit trouble when the collapse of construction contractor St Hilliers led to the SPV Aegis Correctional Partnership being placed into administration.

Read more