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Penary Group, one of the equity providers, has announced that the financial close has been achieve for the US$420 million second stage of the Gold Coast Light Rail public-private partnership ​(PPP) project, a light rail system serving the Gold Coast in Queensland, Australia.

Stage 2 of the Gold Coast light rail is a proposed 7.3 kilometers light rail link between Parkwood and Helensvale. The preferred route for Stage 2 would run from Helensvale heavy rail station adjacent to the Gold Coast Line, then adjacent to the Smith Street Motorway to connect with Stage 1 at the Gold Coast University Hospital light rail station, hence it will include three new light rail stations in total.

This extension will provide a seamless connection with heavy rail, providing a world-class integrated public transport solution for residents and visitors. It will provide a one-transfer journey between the central business districts of Queensland’s two largest cities,Gold Coast and Brisbane.

Now with the financial closed reached and assuming that the approval to proceed with the project is already obtained, it is envisaged that design and construction will be commencing in mid 2016. The target is that the project will be completed in time for the 2018 Gold Coast Commonwealth Games.

You can see in more detail the project description:

Equity financing will come from the same investors in the same proportion as the first project stage:

• Marubeni Group (26.7%)
• International Public Partnerships Limited (26.7%)
• Keolis SA (10%)
• Aveng Australia (10%)
• Palisade (16.7%)
• Plenary Group (10%)

Additionally, Plenary Group is the financial and commercial advisor to the private operator, the consortium GoldLinQ.

GoldLinQ has taken the opportunity to refinance its original private financing. The debt will be drawn through a 13-year term credit facility with KfW, Export Development Canada, Intesa Sanpaolo, BBVA, Mizuho and BTMU, an outcome that enhances financing cost certainty over the life of the project.

Paul Oppenheim,&;Plenary Group Managing Director, said:

“This is the result of clear decision making from both the public and private sector teams and a mutual determination to ensure this project commences on time and remains on track for the Commonwealth Games. Achieving financial close in such a short time frame is an outstanding outcome. To achieve financial close only nine months after the State announced Stage 2 of the project – inclusive of managing a full D&C tender process – was a testament to the overwhelming support the project has gained within the financing team.”