The comment comes as the leading firm helps sell a stake in an Auckland prison PPP
A strong secondary market for infrastructure assets is vital for New Zealand, an expert from Chapman Tripp said.
The comment comes after the leading firm confirmed that it advised InfraRed Capital Partners in the sale of its 40% stake in the public-private partnership (PPP) at Auckland South Corrections Facility (ASCF) to AMP Capital Community Infrastructure Fund.
Financial details of the transactions, which is the first secondary PPP transaction in New Zealand, were not disclosed.
InfraRed was instrumental in developing the ASCF under contract from the Department of Corrections, said part Leigh Kissick, who jointly led the Chapman Tripp team with partner Josh Blackmore.
“This was a landmark transaction for the New Zealand infrastructure market, and as New Zealand’s PPP projects begin to mature, we expect a further pipeline of transactions,” Kissick said. “A healthy secondary market for infrastructure assets is critical for New Zealand as it gives investors the confidence to invest in the development of new infrastructure.”
The Chapman Tripp team also included senior solicitor Chris Gillies, as well as solicitors Kelly To and Tory Hansen. The team advised InfraRed on all aspects of the divestment, which closed earlier this month after securing approval from the Overseas Investment Office and the Department of Corrections.
Sven Stubičan, InfraRed’s head of Australia and New Zealand, explained the investor’s work in the ASCF, which it has been involved since construction through to operation.
“Since completion of the facility in January 2015, and operational commencement in mid-2015, we have worked closely with the New Zealand Department of Corrections to deliver a range of rehabilitation, educational and support programmes to prisoners. This has been a central goal of the project with the dual-aim of assisting offenders to re-integrate into the community and reducing the likelihood of re-offence,” he said.
Stubičan said that InfraRed is confident that the project will have ongoing success.
