Lend Lease is buildings its capacity for public private partnerships (PPPs), including health and education projects.
The development giant has formed an advisory origination business focused on the Australian PPP market. The new business, a partnership to be branded Capella Capital, will be headed by John Bowyer, previously head of infrastructure at Babcock & Brown Asia Pacific and prior to that at ABN AMRO Australia.
Lend Lease already holds a strong market position in both the United States and United Kingdom PPP markets, principally in the areas of health, education, waste treatment and military support infrastructure (including accommodation). The Capella Capital partnership will focus on Australian PPP projects in the health, justice, defence and education sectors, while also selectively targeting specific economic infrastructure projects where a government availability payment model is used.
The business will act as project sponsor and will arrange project finance and provide ongoing transaction management and advisory services in relation to infrastructure projects for both Lend Lease and third parties.
“Lend Lease has a long track record in partnering with governments worldwide to create, own and operate high quality social infrastructure assets. We see the PPP market as an excellent growth opportunity for the group; the market continues to grow despite this tough economic environment and this partnership provides an excellent opportunity for multiple earnings streams for Lend Lease,” said Mark Menhinnitt, global head of public private partnerships for Lend Lease.