Private capital firm confirms interest in funding Hobart's planned AFL stadium

Private capital consortium the Plenary Group is reported to be ready to bid for the right to partner with the Tasmanian Government to deliver the proposed Hobart AFL stadium.

As reported today by the ABC, the consortium, co-founded and Chaired by Richmond FC President John O'Rourke, will bid for the right to deliver the broader Macquarie Point precinct, including the stadium.

Plenary Group Managing Director Damien Augustinus told the ABC that the Tasmanian Government would benefit from partnering with the private sector to deliver the project, advising “we support the consideration being given to the stadium and surrounding precinct being procured as a public-private partnership.

"The Tasmanian Government has a golden opportunity to partner with the private sector to finance, deliver and manage a world-class sporting, tourism and entertainment precinct for decades to come."

In a statement, a spokesperson said the Tasmanian Government was "considering a variety of options for partnering with the private sector and we will choose an approach that delivers the best outcomes and value for Tasmania."

Having committed to the new venue costing no more than $715 million, the Tasmanian Government is understood to be likely to bundle the stadium and elements of the broader precinct could be bundled into a 'design, build, finance and maintain' project, with high powered consortiums, set to jostle for the rights to the contract.

Under a public-private partnership (PPP), assets including the stadium would be wholly owned by the Tasmanian Government, with Stadiums Tasmania to operate the arena.

However, responsibility for financing, management and maintenance of the precinct would fall to the successful consortium, with the Tasmanian Government to then make a yearly or quarterly payment to the consortium over the life of the deal, which would likely be 25 or 30 years.

After the contract period, the management and maintenance of the precinct would fall back to the Tasmanian Government.

This model resembles that used by West Australian Government to develop Perth’s Optus Stadium to which it contributed 60% of capital costs towards the project, and the remaining 40% picked up by the Westadium Consortium.

Plenary Group was the key partner in Melbourne's $1.75 billion Convention and Exhibition Centre and South Wharf precinct, as well as the $1.5 billion Footscray Hospital and yet-to-be-completed Geelong Convention and Event Centre.

In addition to the Tasmanian Government’s plans, proposals for Macquarie Point Stadium 2.0 were announced by a private consortium late last year.

Macquarie Point Stadium 2.0 funding pending
News Corp Australia has today reported that the group behind the Macquarie Point Stadium 2.0 proposal are set to make an “exciting funding announcement” on their plans in the next few days.

Stadia Consortia Managing Director Dean Coleman, who has driven an innovative proposal for a stadium as part of a $2.3 billion urban redevelopment of the Macquarie Point area, advised “we have been consulting closely with major investors and we will hopefully have an exciting funding announcement this week.”

The concept for ‘Mac2’ is for a roofed, 23,000-seat stadium, expandable to 30,000 when demand outstrips seating availability, protruding about 200 metres into the Derwent River on its eastern side.

Its outer ‘skin’ would includes 450 apartments, a private hospital, hotel and convention centre, restaurants, supermarket, retail, RSL and Tasmanian Football Museum spaces.

Coleman told News Corp “we are proposing a project that delivers significant cultural and community benefits beyond the economic and sporting aspirations of this once-in-a-lifetime project.”

Images: The Tasmanian Government's 2022 concept for the Hobart AFL stadium (top, credit: Infrastructure Tasmania) and the concept drawings of a Macquarie Point Stadium 2.0 which includes an outer shell of apartments (below, credit: Stadia Precinct Consortia/SolutionsWon).