InfraRed Capital Partners (“InfraRed”) has committed to sell its 40% stake in the Auckland South Corrections Facility (the “Project”) to AMP Capital’s Community Infrastructure Fund (“AMP Capital”).
The Project, a 25 year contract to design, finance, build, operate and maintain a 960-place adult male prison facility on behalf of the New Zealand Department of Corrections, was sold by InfraRed’s Infrastructure Fund III, which invested in the Project at financial close in September 2012.
Sven Stubican, InfraRed’s Head of Australia and New Zealand, said with respect to the transaction:
“InfraRed has successfully concluded this process with the sale of our interest in the Project to AMP’s Community Infrastructure Fund, subject to New Zealand Department of Corrections and regulatory approval.
We are proud to have seen this important asset successfully through construction and into the operating phase. 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.
We have every confidence in the Project’s ongoing success.”
InfraRed is committed to the New Zealand market and continues to seek opportunities in the region that are accretive to the InfraRed portfolio.”