Plenary closes on A$1bn Aussie cancer centre

A Plenary Group-led consortium is being backed with debt by nine banks and other investors like IFM and CARE Super to develop a new A$1bn cancer centre in Melbourne.

Plenary Health, a consortium led by Plenary Group, has reached financial close on a A$1 billion (€764 million; $995 million) health facility in Parkville, a Melbourne suburb of Australia.

The deal, structured as a public-private partnership (PPP), calls for the construction and maintenance of the Victorian Comprehensive Cancer Centre (VCCC), which is comprised of two separate facilities.  

Plenary leads a group of equity investors which also includes UniSuper and vehicles advised by Partners Group. In addition, the winning consortium counts non-equity investors Grocon/PLC, which will help with construction, and Honeywell, which will provide facilities management services to VCCC for 25-years.

Debt will come from National Australia Bank, Export Development Canada, Mizuho Corporate Bank, The Bank of Tokyo-Mitsubishi, United Overseas Bank, BOS International (Australia), Industry Funds Management, H.E.S.T. Australia Limited and CARE Super. The state of Victoria is reportedly contributing A$436 million for the new cancer centre.

“Medical research is vital to the Victorian economy, and this new centre will allow researchers to work together, further developing the innovative and world-first work Victorian scientists are doing,” said Victorian minister for innovation Louise Asher, in a press release.

Once development begins, the site is scheduled to be complete by the end of 2015 with the doors formally opening in the following year.