06 Aug 2012

Clayton Utz congratulates Exemplar Health on successful Sunshine Coast University Hospital PPP bid

Melbourne, 6 August 2012: Clayton Utz continues to demonstrate its credentials as one of Australia's leading legal advisers on major health infrastructure developments, with its client Exemplar Health Consortium (Exemplar Health) announced as the successful bidder for the Sunshine Coast University Hospital (SCUH) PPP project in Queensland.

A Clayton Utz team, led by partners Dan Fitts and Jo Pugsley and including special counsel Sarah Neaves and senior associates Elliot Raleigh and Elissa Tobin, advised Exemplar Health – comprising Capella Capital, Lend Lease, Siemens and Spotless – on legal aspects of its successful bid to design, build and maintain the SCUH project at Kawana on Queensland's Sunshine Coast, which reached contractual close on 18 July 2012 and financial close on 31 July 2012.

To be delivered as a Public Private Partnership (PPP) with Queensland Health, the SCUH project will comprise a 450 bed facility which will expand to a 738 bed facility by 2021. The project’s capital budget is $1.8 billion, with the facility scheduled to open in late 2016.

Dan and Jo said a number of the project's features required an innovative approach to structuring given the staged nature of the project, the adjacencies to the private hospital also being constructed and the transfer of demand risk to the Exemplar Health in respect of the carparking facilities. Despite its size, the project was closed in an extremely short period of time and almost five months ahead of the announced programme. "We have been privileged to work on such an important project with such dedicated and focused teams, both on our client's and the government's side of this transaction. The procurement process was run with incredible efficiency by both parties but without compromising the overall solution," they said.

The project adds to Clayton Utz's significant experience in PPP health infrastructure, which includes advising the South Australian and Victorian governments on the New Royal Adelaide and Bendigo hospital projects, as well as the successful Plenary consortium on the $1 billion Victorian Comprehensive Cancer Centre project.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.