06 Jun 2011

Spotless, a key consortium partner in Australia's largest health public private partnership (PPP) has confirmed the largest contract in its 64-year history.

Leveraging Spotless' unique Australia-wide services footprint, the 30 year contract for the New Royal Adelaide Hospital (NRAH) covers 13 integrated services and represents the most significant step to date in Spotless' growing, integrated facility services business.

Josef Farnik, Spotless Group Managing Director and CEO said now that the NRAH project has reached financial close it will generate revenue in excess of $60m in the first full year of operations.

"The NRAH project is a significant win and cements Spotless as a leader that delivers on both PPP operations and integrated client services. Spotless, working together with the consortium, is looking forward to delivering what will be Australia's largest and most technologically advanced PPP healthcare project," Mr Farnik said.

"Spotless will work closely with the design team during the construction period. Once constructed, Spotless will protect and extend the life of the hospital's assets, including maintenance of the $1.85 billion hospital, for eventual return to the State with an extended life. Spotless' integrated non-clinical services are core to the successful daily operation of South Australia's largest hospital.

"This is a landmark PPP in size and complexity and we are excited by the opportunity to support South Australia in developing and delivering its Healthcare Plan through the NRAH project.

"The NRAH contract is Spotless' ninth PPP project win across the healthcare, education, defence and social housing sectors. It demonstrates Spotless unique role in understanding and supporting the NRAH vision for healthcare delivery."

Construction of the new hospital will commence in 2011 and will be completed in 2016. Once the NRAH has been commissioned, Spotless will deploy more than 600 staff. Spotless will deliver the following 13 services: engineering and maintenance, catering, cleaning, orderly services, security, patient support services, grounds and gardens maintenance, pest control, internal linen distribution, waste management, bulk stores and logistics, help desk and management of utilities including power and water.

The SA Health Partnership consortium comprises Spotless, Hansen Yuncken, Leighton Contractors and Macquarie Capital. The new hospital is an investment in additional capacity with 800 beds (700 multi-day beds and 100 same-day beds) compared with the current 680. It will offer more operating theatres and procedural rooms, more intensive care beds and a significant increase in emergency care thereby providing an overall 30% increase in capacity for patients throughout the hospital.

Mr Farnik concluded that "Spotless is proud to join with the consortium to deliver what will be Australia's largest and most technologically advanced PPP healthcare project."

For further information, please contact:

Media

Kerrina Lawrence

T: +61 (0) 3 9269 7582

M: +61 (0) 434 198 427

Investors

Rowan Wilkie

Tel: +61 (0) 3 9269 7303

Mob: +61 (0) 418 577 956

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