Plenary has officially achieved financial close for the Nyaal Banyul Geelong Convention and Event Centre after securing the role as the preferred tenderer earlier this year.
The project is being delivered under a Public-Private Partnership (PPP) agreement, with the Plenary-led consortium raising A$456 million in debt through the Special Purpose Vehicle (SPV) created to deliver the project (Plenary Conventions).
The PPP Contract includes financing, design, construction, and maintenance of the new asset for 25 years, with Plenary being the exclusive equity provider for the project and the SPV.
Nyaal Banyul Geelong Convention and Event Centre - About the Project
The Nyaal Banyul Centre will feature a purpose-built convention and exhibition space on the Geelong waterfront. This includes a 1,000-seat venue, two expansive exhibition areas, conference facilities, versatile event spaces, and meeting rooms offering stunning vistas of Corio Bay.
Additionally, the precinct’s development incorporates private sector investment, initiating with a $120 million commitment to establish Geelong’s most prominent hotel – a 200-room Crowne Plaza hotel. The site also foresees a subsequent $130 million investment in future education and commercial spaces within a diversified mixed-use precinct.
The eagerly awaited Geelong Convention and Exhibition Centre precinct is expected to bring significant positive changes to the area, offering substantial benefits to the local community and reinforcing Geelong’s status as a flourishing regional destination.
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Nyaal Banyul Geelong Convention and Event Centre - The Public Private Partnership (PPP)
The Geelong Convention and Event Centre is part of a precinct partnership facilitated by the Victorian Government’s new infrastructure procurement framework. Plenary Conventions Consortium is responsible for financing, designing, constructing, and maintaining the facility for 25 years through a PPP Contract.
PPP Contracts - How they work?
In a Public-Private Partnership (PPP), the private sector often raises the initial financing required for infrastructure development. This funding covers construction, operation, and maintenance costs.
Subsequently, during the Asset Operations and Maintenance (O&M) phase, the government or public entity typically pays back the private sector partner through predetermined payments, which are typically structured based on the successful delivery and performance of the infrastructure or service over an agreed-upon period (in this project, 25 years).
This mechanism allows the government to leverage private sector expertise and capital without an immediate financial burden (and impact on the government’s balance sheet), fostering the delivery of critical infrastructure projects, in an arrangement akin to “buy-now-pay-later” for infrastructure projects.
Plenary Conventions Consortium
The Plenary Conventions consortium members are detailed below:
Consortium Member | Role |
Plenary Group | Sponsor, Investor, Hotel and Commercial Office Developer, Asset Manager |
Built | Builder |
BGIS | Facilities Management Services Contractor |
Woods Bagot | Lead in Design and Architecture |
Nyaal Banyul Geelong Convention and Event Centre - Financial Close and Funding
Private Financing
Plenary is responsible for providing the new convention’s entire equity and debt financing elements to allow project construction. This week, the Plenary Conventions Consortium confirmed it reached a financial close of $456m agreed upon with prominent domestic and international banks, including ANZ, Westpac, and ICBC.
Public Funding
The public funding for the Nyaal Banyul Geelong Convention and Event Centre precinct involves contributions from various entities. The Victorian Government is leading with a substantial investment of $423 million, supported by $30 million from the Australian Government and an additional $3 million from the City of Greater Geelong.
Nyaal Banyul Geelong Convention and Event Centre - Economic Impact
More than 1,450 jobs are currently being supported by the construction efforts, with Built collaborating with numerous local subcontractors and suppliers to maximize regional participation.
This includes a partnership with the local recruitment firm gforce, aimed at fostering 28 new apprentice and trainee positions for individuals from disadvantaged backgrounds. Once the precinct is operational, it’s estimated to sustain over 700 ongoing jobs.
Plenary Group’s Chief Investment Officer, Paul Crowe (on the right), expressed enthusiasm about the consortium’s role in bringing this iconic project to reality. He emphasized the transformative impact the project will have on Geelong, citing its enduring social and economic benefits for the entire region.
