Case Study - Singapore Sports Hub
| Country: | Singapore |
|---|---|
| Business area: | Infrastructure Development |
| Sector: | Leisure |
| Project value: | US$1.3bn |
| Investment date: | 2010 |
| Completion date: | 2014 |
| Realisation date: | To be determined |
Design, construct, finance, operate and maintain a national sports complex.
In August 2010, a consortium that included InfraRed reached financial close on the Singapore Sports Hub, to date the world’s largest sports public private partnership (PPP).
The project is Singapore’s largest PPP project to-date and will comprise a 55,000-seat capacity stadium, a multi-purpose indoor area, an aqua centre and supporting leisure and commercial development.
The project revenues will take the form of scheduled availability payments (not dependent on the number of visitors) which will be enhanced by commercial rents, car parking and event-related income (e.g. ticketing, food and beverage sales).
The project includes a number of features that required specific structuring expertise:
- the project is highly bespoke and involves a customised payment mechanism covering the availability regime and event-related revenue sharing with the client;
- the complexity of the commercial operations (event management, retail, catering) requires a larger than typical number of consortium members. This increases the complexity of risk allocation and makes stakeholder management more challenging; and
- an alternative funding solution had to be identified given the scale of the debt finance requirement and the disruption to global debt markets during the preferred bidder stage.
Completion of construction is scheduled for 2014. This will be followed by 21 years of operations.
The project was awarded Asian PPP Transaction of the Year 2010 by Infrastructure Investor magazine.
