Plenary Group closes A$861m military accommodation project

The public-private partnership investor has raised about A$745m from three banks and has chipped in A$116m of its own equity to finance the construction and maintenance of 3,020 accommodation units at 14 defence facilities across Australia.

Plenary Group, an investor in public-private partnerships (PPPs), has reached financial close on a military accommodation project in Australia known as Single Living Environment and Accommodation Precinct phase 2, or Single LEAP 2, for short.

Single LEAP 2, worth A$861 million (€979 million; $1.4 billion), will require Plenary to design, build, finance, operate and maintain 3,020 accommodation units at 14 military facilities across Australia. The PPP contract will last for 33 years with construction expected to last close to three years.

A trio of banks including Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB) and Natixis backed the deal with A$744.6 million of debt, breaking down into A$297.84 million each for ANZ and NAB and A$148.9 million for Natixis. 

The 5-year loan will be syndicated and refinanced at the end of its term. Sponsor Plenary contributed A$116 million in equity, putting the project’s debt-to-equity ratio at 86.5/13.5.

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Plenary had already won the 30-year, A$300 million Single LEAP 1 contract, which required it to build 1,395 rooms for Australian Defence Force Personnel in New South Wales and Queensland. The group – which has offices in Australia and Canada – also manages several other PPP contracts across the defence, water, justice and transport sectors.