The project was described as one of the most significant infrastructure projects in New Zealand
Allens, White & Case and Simpson Grierson have confirmed their roles in the $440m Christchurch Men's Prison redevelopment project - the first public-private partnership in the country to achieve financial close since the PPP model was reintroduced by the government.
According to Simpson Grierson, it is among New Zealand’s biggest social infrastructure PPP projects. White & Case partner Cameron Watson described the project as “one of New Zealand’s most significant infrastructure projects”.
The Department of Corrections named the Southern Renewal Partners consortium as the preferred bidder in March. The deal reached financial close on 22 July.
Phase one of the redevelopment will be delivered over 25 years. It includes 240-bed high-security accommodation building, a 52-bed intervention and support unit and health centre, and supporting operational facilities. The consortium will design, build, finance and maintain phase one; the corrections department will remain in charge of custodial services.
Allens and Simpson Grierson advised the Southern Renewal Partners consortium, which consists of lead sponsor Plenary Group (65% investor, financial and commercial adviser, special purpose vehicle manager), Webuild Concessions (25% investor, design and construct joint venture lead) and Leighs Construction (10% investor, design and construct joint venture partner). Serco acted as asset management and facilities maintenance contractor.
The lenders to the project are ANZ, HSBC, ING, Intesa Sanpaolo and Westpac.
“Plenary brings a strong track record in delivering complex social infrastructure, and the consortium’s willingness to work through the novel aspects of a project of this kind was an important factor in the project achieving financial close”, Simpson Grierson co-lead partner Edward Norman said in a media release.
Watson added that achieving financial close “demonstrates the private sector’s enthusiasm for, and the bankability of, such nationally important New Zealand infrastructure projects”.
Simpson Grierson’s team tackled the project’s bid and financial close phases. It guided Southern Renewal Partners on the consortium structure and equity investment arrangements among the participants.
The team also assisted on the project agreement with the Department of Corrections and the associated design, construction and facilities management subcontracts. In addition, it handled the New Zealand law aspects of the debt financing and associated security arrangements. The firm also supported the land, planning and regulatory workstreams related to the redevelopment.
Corporate partners Catherine Shipton and Norman led the deal team alongside construction partner Lisa Curran. The team comprised James Hawes, Tara Wylie, Stu Evans, Sarah Scott, Nick Chapman, Sonia Vitas, Zelda Gower, Dania Alsagoff, Will Barnes, Georgia Kellow, Shanae Richardson, Isabel van Tuinen, Briana Lyons, Georgia Thompson, Latesha Metzler, Hamish MacDonald and Phoebe Wood.
“The Christchurch Men's Prison redevelopment represents more than the return of the PPP model. It is a significant social infrastructure project that will support the long-term needs of New Zealand's corrections system while drawing on the expertise of leading international and local participants”, Shipton said.
The Allens team advised Plenary Group, working alongside Simpson Grierson. Allens put together a cross-disciplinary team that consisted of lawyers from its projects and banking and finance practices.
The projects team that tackled this transaction comprised partners David Donnelly and Nicholas Ng; senior associates Ashleigh Blumor and Clara O'Loghlin; associate Megan Lee; and lawyers Amy Zhang and Nima Nimalachandran.
The banking and finance team that worked on this deal was made up of partner James Darcy, managing associate Tristan Kelly, senior associate Naomi Lee, associate Sue Lee and law graduate Angeline Sun.
A White & Case team led by Watson guided the consortium’s lenders on all aspects of the project financing for phase one. He was supported by partners Joanne Emerson Taqi and Candice Ota; counsel Matt Sercombe; and associates Laurence Judges, Nabeela Maricar and Olivia Tomiyama.
