Industrial Alliance Insurance and Financial Services announced its first investment in Australia , in the form of debt to the tune of 25 million Australian dollars (approximately on par in Canadian dollars) in the New Royal Adelaide Hospital (new RAH) project, in Adelaide , South Australia.
The New Royal Adelaide Hospital (new RAH) is a public-private partnership (P3) with respect to the design, construction, financing and use of this hospital over a 35-year period. Construction got underway in 2011 and the new RAH will open its doors in 2016.
The new RAH will be on the cutting edge of technology and will be able to serve 85,000 inpatients admissions per year and 400,000 occasions of service for outpatients. It is no doubt one of South Australia’s largest projects, with construction costs in the neighbourhood of 1.85 billion Australian dollars.
"Industrial Alliance is one of the first Canadian insurers to invest in Australia . This investment is part of the strategy to healthily diversify our investment portfolio. The New Royal Adelaide Hospital is a quality asset in that it is based on construction and availability payments of a debtor with an excellent credit standing, as these payments are guaranteed by the State of South Australia ", highlights Michel Tremblay , Executive Vice-President and Chief Investments Officer, Industrial Alliance. "Additionally, it allows us to get our name out there as an investor in the Australian market, a market which has significant opportunities for growth."
The consortium put in place to deliver this P3 project comprises approximately 30 members, and includes some solid players, not only financially but also in terms of their experience. It includes, among others, the Australia and New Zealand Banking Group Limited, the Banco Bilbao Vizcaya Argentaria ( Hong Kong Branch) and the Westpac Banking Corporation.
As at June 30, 2014, Industrial Alliance’s investments represented total assets of 25.4 billion dollars (CAD).
Founded in 1892, Industrial Alliance Insurance and Financial Services operates throughout Canada as well as in the United States.
The Company offers life and health insurance, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgage and car loans and other financial products and services for both individuals and groups.