Company Announcements

Increased equity in Clarence Correctional Centre

Source: RNS
RNS Number : 9327I
John Laing Group plc
17 December 2020

17 December 2020



John Laing increases equity stake in Clarence Correctional Centre

John Laing Group plc ("John Laing" or "the Group"), the responsible investor and active manager of infrastructure projects internationally, is pleased to announce that it has completed a transaction to invest A$22.5 million (approximately £12.4 million) to increase its shareholding in Clarence Correctional Centre ("Clarence" or "the Project").  The Group has acquired an additional 10% interest from construction partner John Holland Group ("JHG") which increases John Laing's overall shareholding to 90%.

Clarence is an availability-based public-private partnership project between the New South Wales Government and the NorthernPathways Consortium to design, build, finance and maintain a 1,700 bed correctional centre in Grafton, New South Wales.  The facility has an innovative approach to the education, rehabilitation and reintegration of offenders into the community, operating a results-focused model, with the aim of reducing recidivism rates.

Since investing in Clarence in 2017, John Laing has played a lead role in the development and delivery of the project.  The project company management team consists entirely of John Laing employees who, working closely with our partners, have been instrumental in leading the project through the design and construction phase. The Project was delivered on schedule by JHG, and the John Laing team oversaw the on-time commencement of operations in July 2020.

This additional equity investment enables John Laing to increase its stake in an attractive availability-based asset with a 20-year operating concession from a AAA-rated state government.  This is an investment opportunity for the Group to generate additional value from the asset as it works with partners to build a strong operational track record.  It is also an example of how John Laing is able to invest further in existing projects in order to enhance its portfolio and improve cost efficiency.

John Laing expects this acquisition to be modestly accretive to NAV based on the current valuation of its existing interest.

Justin Bailey, Co-Head of PPP and Greenfield Projects at John Laing, said:

"We welcome the opportunity to increase our investment in Clarence Correctional Centre, an asset that we clearly know very well and where we can add further value.  We continue to work with our NorthernPathways consortium partners to deliver a forward-thinking, world-class correctional facility where the focus is on providing inmates with the opportunity to rehabilitate, learn new skills, obtain qualifications and build the relationships and behaviours that will allow them to give back to society at the end of their sentence."


Analyst & investor enquiries:

Kellie McAvoy

Head of Investor Relations

+44 (0) 7923 249298

Media enquiries:

Tashi Lassalle

Director of Communications

+44 (0) 7823 249384


Matthew Denham

+44 (0) 7825 735596

Camilla Cunningham

+44 (0) 7464 982426


About John Laing

John Laing is a responsible investor and active manager of infrastructure projects internationally. John Laing creates value through investing in sustainable greenfield infrastructure projects, and by actively managing these projects through construction and into operation. We play a key role in providing solutions to complex infrastructure challenges leveraging our deep expertise, flexible business model and strong network of partners to respond to new opportunities as they emerge, helping to deliver vital infrastructure that improves the lives of the communities we serve.


About Clarence Correctional Centre

The Clarence Correctional Centre is located approximately 12.5 kilometres southeast of Grafton in New South Wales and is designed to accommodate up to 1,700 inmates.  Clarence is being delivered by the NorthernPathways Consortium consisting of John Holland Group, Serco Group Plc and John Laing.  The project created over 1,200 jobs during construction, and will employ up to 600 permanent staff once fully operational.  The centre is focused on rehabilitation to reduce reoffending rates, and also features to state-of-the-art security and surveillance to ensure safety and security.

Clarence is one of the first prisons to be designed and operated in accordance with the New South Wales State Government's Better Prisons programme.  Announced in 2016, Better Prisons is designed to improve performance, reduce reoffending, and increase efficiency.   A core goal of the programme is to deliver a correctional system that focuses on rehabilitation as a measurement of success.  This includes industry and community partnerships to provide vocational training aimed at improving inmates' employment prospects and help facilitate reintegration back into society. 



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