By Robb M. Stewart
MELBOURNE, Australia--AMP Capital has bought Sydney's
century-old Royal North Shore Hospital from Royal Bank of Scotland
Group PLC (RBS.AU), tapping into demand for social infrastructure
investments in Australia.
AMP Capital will own the asset until October 2036. The
investment manager's Community Infrastructure Fund will own 70% of
the equity and AMP Capital-managed investors will hold the
remainder.
Julie-Anne Mizzi, head of social infrastructure and aged care at
AMP Capital, said investors like social infrastructure assets
because of their limited risk. They also offer stable,
government-backed, inflation-linked returns as well as an
attractive yield and low volatility.
"The market for social infrastructure investment in Australia
remains strong and we expect to see further demand going into
2015," she said.
Royal North Shore Hospital, established in 1885, is located in
St Leonards, about 4 miles from Sydney's central business district.
It has about 750 beds and AMP Capital said there are plans to
consolidate and replace more than 50 outdated buildings, under a
public-private partnership project.
AMP Capital, which is an arm of financial services firm AMP Ltd.
(AMP.AU), was advised on the acquisition by Bank of
Tokyo-Mitsubishi UFJ.
Write to Robb M. Stewart at robb.stewart@wsj.com
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