John Laing joins Footscray hospital bid group

10 February 2020 - 12:00 am UTC

The Advance West consortium has added John Laing as an equity investor to the group bidding for the AUD 1.5bn (USD 1bn) Footscray Hospital PPP, two sources familiar said.

Advance West includes Tetris Capital, John Holland as builder and equity investor. as well as John Holland Services and ISS as facilities managers.

DIF also bid to join Advance West but was unsuccessful, the sources said. The Dutch pension fund has also been angling to join other consortia.  

John Laing and DIF declined to comment.

AustralianSuper was also linked with the Advance West consortium before the groups were shortlisted last year, but sources at the time said the equity amount was too small for the super fund. 

The other two groups bidding for Footscray Hospital are Exemplar Health, including Capella Capital, Lendlease and Spotless; and Plenary Health, including Plenary, Multiplex, Honeywell and Compass.

Bidders have until next quarter to respond to an RFP sent to the shortlist in early November. A winner is due to be picked by the middle of the year, construction is scheduled to start by the end of the year and the hospital is expected to be operating by 2025.

The new 504-bed hospital will be built on a site adjacent to Victoria University in Melbourne’s inner west that will replace the existing facility. 

The Victorian government is encouraging consortia to consider using long-term debt that matches the length of the concession to reduce refinancing risk. 

PwC is commercial and financial advisor to the government, Minter Ellison legal advisor, Jacobs Group and Destravis architect and health planner advisers and Waterman is technical adviser.

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