AMP Capital has bought a prison in Western Australia

Oliver Lang/AFP/Getty Images

AMP Capital has bought a prison.

The Australian private wealth giant has bought the Eastern Goldfields regional prison redevelopment project near Kalgoorlie in Western Australia from Lend Lease and MLC.

The 350-bed prison is a public-private partnership with the state government. The deal includes the provision of facilities management services for 25 years.

“This project provides long-term, highly predictable cash flows that are underpinned by the Western Australian government,” says Andrea McElhinney of the AMP Capital Community Infrastructure Fund.

The terms of the acquisition were not released.

The AMP Capital Community Infrastructure Fund (CommIF) is invested in 13 social infrastructure assets in Australia and New Zealand worth $8.2 billion, including primary, secondary and tertiary education institutions and other assets in the health, justice, defence, water and community sectors.

“Social infrastructure not only provides investors with attractive returns that are characteristic of the broader infrastructure asset class but our investors also like the fact its assets benefit the community,” says McElhinney.

“Offshore interest in Australian infrastructure has been a major theme of the local market during the last two years and social infrastructure has not been immune to this, with the first offshore investor coming into CommIF this year.”

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.