Palisade buys hospital stake from Hastings

The mid-market Australian fund manager has completed its third recent deal in the public-private partnership space.

Palisade Investment Partners, the Sydney-based fund manager, has reached financial close on the acquisition of a 100 percent equity stake in the Newcastle Mater Hospital PPP project from Westpac Essential Services Trust, a fund managed by Melbourne-based Hastings Funds Management.

The A$185 million (€131 million; $173 million) hospital project was delivered as a public-private partnership (PPP) with NSW Health, a department of the New South Wales government. The facility was built in 2009 and is operated under a 25-year concession agreement.

A statement from Palisade said it had acquired and will manage the project on behalf of an unnamed direct investment mandate client. Financial terms of the deal were undisclosed.

The deal marks the third recent transaction struck by Palisade in the PPP space. Earlier this month, it acquired 49.9 percent of the AgriBioscience Research Centre in Melbourne. Earlier in the year it was part of the North West Rapid Transit consortium selected as preferred operator for the North West Rail Link project’s “Operations, Trains and Systems” PPP contract.

Palisade’s Australian Social Infrastructure portfolio now has seven investments – all of which are in the operating phase. The portfolio has delivered an investor return of 16.8 percent since inception in 2011 including 7.4 percent income.

In all, Palisade has over A$1.6 billion in funds under management and commitments and is currently invested in a portfolio of more than 15 infrastructure assets. They span the airport, port, renewable power, transmission, timberland, social infrastructure, agri-infrastructure and alternative waste sectors.