National sports stadium and associated complex in Singapore
project capital cost
The development, design, financing and operation of the Singapore Sports Hub represents our largest and most complex development infrastructure project to date. The project has a capital value of US$1.4bn and involves the construction of a 55,000-seat stadium, an aquatic centre, a multi-purpose indoor arena and supporting retail and commercial developments.
The construction of the facilities, which was completed in 2014, is followed by an operating period of 21 years generating a combination of availability fees and event-related income.
In August 2010, a consortium that included InfraRed reached financial close on the project for the construction and operation of the Singapore Sports Hub.
One of the key success factors that differentiated the consortium bid was our partnership with the Bouygues Group, one of the world’s leading construction companies with over 133,000 employees worldwide. We have worked in partnership with the Bouygues Group for over 15 years and, in that time, we have successfully developed and co-funded 12 projects (involving capex of over US$3.5bn). Between the two groups, we co-sponsored the development consortium and demonstrated our ability to understand the key success factors of the project and importantly the relevant criteria of the stakeholders.
The bidding process was especially long and complex, and was exacerbated by the global financial crisis which extended the financial close period to the point where traditional sources of project finance were largely unavailable. Against such a backdrop, the consortium nevertheless successfully arranged bank funding and secured the contract in the summer of 2010.
The characteristics of the project make it one of the most high profile and complex projects we have undertaken to date. The commercial operations (event management, retail, catering) require careful coordination and there are multiple revenue streams and service providers.
The project’s revenue streams involve performance-linked availability payments but also event-specific income derived from commercial rents, sponsorship, ticket sales and event related food & beverage sales. This is a highly unique characteristic of a Public Private Partnership (PPP) project and one that is expected to create real value for all stakeholders.
The Singapore Sports Hub is the largest PPP in Singapore's history and as such, the contract involves a greater number of investors, partners, sub-contractors and other stakeholders than usual.
Successful delivery of the project depends on our ability to manage a broad range of parties, our skill in financial structuring and asset operation, maintaining open and close communication with the client and ensuring the venue is ready for operation at opening.
The project was successfully refinanced in 2015.