Plenary Group, on behalf of Plenary Living, has completed an A$738.8 million refinancing of its Australian Defence Force Single LEAP 2 project.

Plenary said it achieved impressive financing terms across three tranches – five, 10 and 15 years – with an overall average life in excess of 10 years.

Four existing financiers – Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Natixis – and two new financiers – The Bank of Tokyo-Mitsubishi UFJ (BTMU) and Credit Agricole – participated in the deal.

Plenary Group Head of Origination Paul Crowe said the refinance delivers a great outcome to both the Commonwealth Government and the equity partners in the Plenary Living SPV by considerably reducing refinancing risk. Mr Crowe said:

“This refinancing result reflects both the strength of our relationships in financial markets and our structuring capability,”

“To have all initial debt providers remain in the transaction is a great result, notwithstanding the impact of APRA and Basel III capital requirements on long term swaps.

“This is a pleasing outcome for Plenary, our equity partners Caisse de dépôt et placement du Québec and Palisade Investment Partners, and the Commonwealth.”

Mr Crowe said security and intercreditor structures were implemented to allow for future long-term bond issuance.

About ADF Single LEAP 1 and 2

The Single LEAP 2 project was delivered as a public-private partnership (PPP) between the Plenary Living consortium and the Australian Department of Defence.

It involved the finance, design and construction of 3,014 accommodation units and supporting infrastructure at 17 sites across 14 military bases in every mainland state and territory.

Plenary Living teamed up with a consortium of talented local builders to deliver the Single LEAP 2 sites.

Sitzler delivered the Northern Territory package of sites which included 334 units at Robertson Stage 1, 352 units at Robertson Stage 2 and 232 units at Larrakeyah Barracks.

The Single LEAP 2 project followed Plenary’s successful delivery of Single LEAP 1, which saw 1,395 accommodation units delivered as a public-private partnership with Defence across three bases in Queensland and New South Wales.

Plenary Living, through Compass Group, is now responsible for the long-term management of more than 4,000 Defence accommodation units across Australia.

Plenary Living employs more than 80 full-time staff in the ongoing operation of its Single LEAP 1 and 2 sites.

The provision of quality single living accommodation at military bases enables the Department of DEfence to attract, recruit and retain quality young people in the Australian Defence Force.

The multi-site rollout means that Defence personnel moving from base to base will experience a uniformly high standard of well-quipped and comfortable accommodation.