John Laing Group plc Increased equity in Clarence Correctional Centre (9327I)
December 17 2020 - 2:00AM
UK Regulatory
TIDMJLG
RNS Number : 9327I
John Laing Group plc
17 December 2020
17 December 2020
INVESTMENT UPDATE
John Laing increases equity stake in Clarence Correctional
Centre
John Laing Group plc ("John Laing" or "the Group"), the
responsible investor and active manager of infrastructure projects
internationally, is pleased to announce that it has completed a
transaction to invest A$22.5 million (approximately GBP12.4
million) to increase its shareholding in Clarence Correctional
Centre ("Clarence" or "the Project"). The Group has acquired an
additional 10% interest from construction partner John Holland
Group ("JHG") which increases John Laing's overall shareholding to
90%.
Clarence is an availability-based public-private partnership
project between the New South Wales Government and the
NorthernPathways Consortium to design, build, finance and maintain
a 1,700 bed correctional centre in Grafton, New South Wales. The
facility has an innovative approach to the education,
rehabilitation and reintegration of offenders into the community,
operating a results-focused model, with the aim of reducing
recidivism rates.
Since investing in Clarence in 2017, John Laing has played a
lead role in the development and delivery of the project. The
project company management team consists entirely of John Laing
employees who, working closely with our partners, have been
instrumental in leading the project through the design and
construction phase. The Project was delivered on schedule by JHG,
and the John Laing team oversaw the on-time commencement of
operations in July 2020.
This additional equity investment enables John Laing to increase
its stake in an attractive availability-based asset with a 20-year
operating concession from a AAA-rated state government. This is an
investment opportunity for the Group to generate additional value
from the asset as it works with partners to build a strong
operational track record. It is also an example of how John Laing
is able to invest further in existing projects in order to enhance
its portfolio and improve cost efficiency.
John Laing expects this acquisition to be modestly accretive to
NAV based on the current valuation of its existing interest.
Justin Bailey, Co-Head of PPP and Greenfield Projects at John
Laing, said:
"We welcome the opportunity to increase our investment in
Clarence Correctional Centre, an asset that we clearly know very
well and where we can add further value. We continue to work with
our NorthernPathways consortium partners to deliver a
forward-thinking, world-class correctional facility where the focus
is on providing inmates with the opportunity to rehabilitate, learn
new skills, obtain qualifications and build the relationships and
behaviours that will allow them to give back to society at the end
of their sentence."
Analyst & investor enquiries:
Kellie McAvoy Head of Investor Relations +44 (0) 7923 249298
Media enquiries:
Tashi Lassalle Director of Communications +44 (0) 7823 249384
Teneo:
Matthew Denham +44 (0) 7825 735596
Camilla Cunningham +44 (0) 7464 982426
About John Laing
John Laing is a responsible investor and active manager of
infrastructure projects internationally. John Laing creates value
through investing in sustainable greenfield infrastructure
projects, and by actively managing these projects through
construction and into operation. We play a key role in providing
solutions to complex infrastructure challenges leveraging our deep
expertise, flexible business model and strong network of partners
to respond to new opportunities as they emerge, helping to deliver
vital infrastructure that improves the lives of the communities we
serve.
About Clarence Correctional Centre
The Clarence Correctional Centre is located approximately 12.5
kilometres southeast of Grafton in New South Wales and is designed
to accommodate up to 1,700 inmates. Clarence is being delivered by
the NorthernPathways Consortium consisting of John Holland Group,
Serco Group Plc and John Laing. The project created over 1,200 jobs
during construction, and will employ up to 600 permanent staff once
fully operational. The centre is focused on rehabilitation to
reduce reoffending rates, and also features to state-of-the-art
security and surveillance to ensure safety and security.
Clarence is one of the first prisons to be designed and operated
in accordance with the New South Wales State Government's Better
Prisons programme. Announced in 2016, Better Prisons is designed to
improve performance, reduce reoffending, and increase efficiency. A
core goal of the programme is to deliver a correctional system that
focuses on rehabilitation as a measurement of success. This
includes industry and community partnerships to provide vocational
training aimed at improving inmates' employment prospects and help
facilitate reintegration back into society.
ENDS
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