InfraRed announces financial close on new Wiri men's prison in Auckland, New Zealand

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InfraRed Capital Partners is pleased to announce that, as part of the SecureFuture consortium, it has achieved financial close on a new public-private partnership to provide and operate Wiri Men’s Prison in South Auckland, New Zealand, whose total cost is expected to be c.NZ$300m (US$245m).

Accommodating up to 960 prisoners, this facility will be designed, financed, built, operated and maintained by the consortium partners on behalf of the New Zealand Department of Corrections and will focus on rehabilitation and making communities safer. The design of the prison will draw upon international research and expertise to ensure its construction complements a world-class approach to reducing reoffending in a safe, secure and decent setting. SecureFuture will run innovative programmes to tackle specific causes and types of offending and has committed to providing meaningful education and job training to assist prisoners in staying away from crime when released.

Over the course of the 25-year contract, SecureFuture will operate a payment-by-results model under which it will receive incentive payments for reducing reoffending by an agreed percentage. Conversely, payments will be cut if the prison fails to achieve specified targets for the effectiveness of rehabilitation and reintegration programmes.

Building work will commence immediately and the prison is scheduled to open in 2015. InfraRed has committed to invest up to NZ$30m (US$25m) into the project.

Mark Woodhams, Team Co-Head, Developmental Infrastructure, at InfraRed, commented:

“InfraRed is delighted to invest in this project and participate in and encourage innovative programmes to tackle offending and enhance rehabilitation. We are looking forward to working with the client and our consortium partners in this ground-breaking venture."