PIP Fund keen on convention centre

Lloyd Morrison, chairman of Morrison & Co. Photo / Mark Mitchell

The Public Infrastructure Partnership Fund developed by Wellington-based investment firm Morrison and Co is investing in the public-private partnership that developed the Melbourne Convention and Exhibition Centre.

It is also putting its hand up to be a part of any public-private partnership to build a national convention centre in New Zealand.

The PIP Fund is managed by Morrison and Co and its investors include the NZ Superannuation Fund and the NZ Social Infrastructure Fund.

The Melbourne investment, which is PIP Fund's first, is via a joint venture with Plenary Group, a Melbourne-based PPP firm which has expressed interest in expanding in New Zealand.

"The fact that we're able to invest under a joint venture arrangement with a specialist local PPP investor like Plenary Group makes this all the more attractive for us," said Steven Proctor, executive director of the PIP Fund.

The investment provided an excellent opportunity to participate in an operational PPP asset in Australia.

PIP Fund would also like to participate in building a convention centre in this country.

The Ministry of Economic Development says it intends to develop a national convention centre and will soon reveal a preferred location.

"Whichever site the Government selects, the PIP Fund would like to fund and deliver the New Zealand National Convention Centre as a public-private partnership," Proctor said.

The Melbourne centre was completed last year and includes a 5000-seat hall, 32 meeting rooms and a grand banquet room. It has a "six star green star" environmental rating for design and has won a number of architectural awards.

"This is an outstanding facility which is operating well and has a 25-year PPP contract in place," Proctor said.

Under the PPP model the public sector retains responsibility for attracting events to the centre. The private partner is contracted to build and maintain the facility, and receives a pre-agreed ongoing payment for making it available for use.

Proctor also noted the recent New Zealand Government announcement that agencies proposing projects with a cost of more than $25 million would be required to consider PPP procurement options and that, in the medium term, this should lead to more opportunities for the fund.

- NZPA