Ravenhall Prison Project

Ravenhall Correctional Centre is the largest prison in Victoria and is one of the largest correctional facilities in Australia. It has set a global benchmark for rehabilitative prisons worldwide.

Capella Capital led a consortium of GEO Group Australia, GEO Care, Honeywell, John Holland and Forensicare. Capella’s role included sponsor, financial advisor and bid leader for the 1,300 bed prison that was completed in 2017.

Recognised as the first Australian PPP in nearly two decades to include a full suite of custodial services, this project presented many complexities and interfaces when compared to a traditional PPP project. Capella Capital successfully managed and led the consortium (including five subcontractors D&C, FM, Custodial, Health and Forensic Mental Health) through the procurement phase and into Financial Close, achieved in September 2014.

By partnering with a range of organisations the consortium was able to deliver pre-release and post-release services at the prison with the aim to reduce the likelihood of prisoners reoffending once their sentence is complete. Partners included the Kangan Institute, YMCA, Western Suburbs Indigenous Gathering Place Association and Melbourne City Mission.

Financing the project was particularly challenging given the unique risk profile of the custodial services and the multiple interfaces across the consortium. Capella Capital was able to secure a highly customised and efficient finance package from a strong group of financiers, which included three Australian banks, and an offshore specialist custodial investor. 

Construction commenced in February 2015 and commenced operations in October 2017.