Home' Future Building: The Australian Infrastructure Review : Issue 1 Contents The past decade has seen a significant
increase in the number of infrastructure
projects being delivered through Public
Private Partnerships (PPPs) and Australia has
been at the forefront of this curve. Australian
Infrastructure Review's editorial team sat
down with John Bowyer, CEO of Capella
Capital, a partnership with Lend Lease and
one of Australia's most experienced PPP
origination businesses, to understand the
value of this delivery model and Capella
Capital's unique offering to this sector.
Why do you think PPPs are an
increasingly popular delivery model for
Australian public projects?
PPPs have delivered more reliable
infrastructure assets, both in terms of
construction and service delivery, providing
Governments with better value for money
than projects delivered by traditional
procurement methods. Governments also
like the more rigorous procurement process
and the certainty of cashflow that PPPs
PPPs have been successfully delivered in
almost all states and territories in Australia
and we are now seeing one of the largest
pipelines since PPP programmes began. The
delivery model can be adapted to suit the
differing needs of Governments in various
asset classes from social infrastructure such
as schools and hospitals to roads, rail, rolling
stock and water.
What is Capella Capital's focus?
Capella Capital provides a fully integrated
solution -- from project inception and
financial and legal structuring, through to
debt and equity arrangement, project
development and into long term ownership
and asset management. We also provide high
quality strategic and financial advice to
Our initial focus will primarily be on the
PPP infrastructure sector but we will also
look to promote our strong track record in
other infrastructure areas such as transport,
water and renewables. The team has recently
closed the $323 million South Australian
New Schools PPP Project as part of the
Pinnacle Education Consortium.
We are pleased with our initial successes
and we look forward to more in the coming
year or so.
What are the benefits of the Lend Lease
Lend Lease's support of Capella Capital, a
cornerstone of which is the provision of
equity to our projects, allows us to sponsor
and arrange PPP projects across Australasia.
Lend Lease is a highly respected global
property solutions provider with a strong
reputation as an equity investor, fund
manager and asset manager -- they are in this
business for the long term.
For Lend Lease, Capella Capital is an
important strategic step in broadening its
existing global PPP infrastructure platform
and funds management capability.
In your experience, what is the most
important factor contributing to the
success of PPPs?
The Capella Capital team has partnered with
most governments, market leading
construction contractors, facilities managers
and debt and equity providers in Australia
over the last 10 years that the team has been
together. Strong relationships are the
foundation of our business and the PPP
model. It is through the strength of these
partnerships that successful projects are able
to be delivered.
The best evidence of our success is the
support Capella Capital has received from all
sectors of the market as it continues to
establish its business. In particular, the
support from governments and our key
consortium partners has been greatly
appreciated, and we are committed to
delivering many successful projects with our
partners over the coming years.
CAPELLA CAPITAL --
CEO, Capella Capital Pty Limited
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