UPDATE: Lend Lease, Siemens To Build A$2 Billion Australian Hospital

--Lend Lease, Siemens consortium to build A$2 billion hospital

--Both companies to take equity in the project

--Consortium will participate in public-private partnership

--Construction expected to start in coming months, run through 2021

(Adds details of Siemens unit involvement in the second paragraph, Siemens executive comments in the fourth paragraph)

 
   By Ray Brindal 
 

CANBERRA--Australia's Lend Lease Corp. (LLC.AU) and Germany's Siemens AG (SIE.XE) have won a contract to build the A$2 billion (US$2.06 billion) Sunshine Coast University Hospital.

Lend Lease and Siemens Financial Services will work with the Queensland state health department on the construction, maintenance and financing of the hospital, which will service Kawana, one of Queensland state's fastest growing regions, about 100 kilometers north of Brisbane.

Each company will take 50% equity in the project, while Lend Lease's infrastructure development business, Capella Capital, will act as financial advisor to the consortium and Siemens will participate in the senior debt.

"Siemens is proud to have been selected to deliver a first-class hospital as part of the Lend Lease-led consortium and offer a comprehensive financial solution as well as a deep understanding of hospital processes and technologies," Jeff Connolly, chief executive of Siemens Australia, said in a statement.

Lend Lease Chief Executive Steve McCann said he expects financial close on the project by the end of this month after which construction will start.

The 450 bed first stage is scheduled for completion in late 2016 and the full 738 bed capacity will come on line by 2021 under a public-private partnership with a concession period of 25 years.

Shares in Lend Lease rose after the announcement. They closed up 2.2% at A$7.94.

-Write to Ray Brindal at [e-mail]

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