International PPL to invest in Gold Coast light rail extension

Infrastructure investment company International PPL said the GoldLinQ consortium, of which it is a member, will make a further investment into a 7.3km extension to the Gold Coast Light Rail project in Queensland, Australia.

The original A$1.29bn project delivered by the Queensland Government and GoldLinQ – which has been operational since July 2014 – saw the development of a 13km light rail system between Gold Coast University Hospital and Broadbeach.

International PPL said it has committed to invest around A$7m (£3.8m) for a 26.7% equity stake in the extension alongside Plenary Group, Marubeni Group, Palisade, Keolis and Aveng Group.

Construction is expected to complete at the end of next year, with operations beginning in early 2018 in time for the opening of the Gold Coast Commonwealth Games in April.

International PPL said its investment will be made towards the end of the construction period and its commitment will be secured by a letter of credit.

“The return profile of this follow-on investment is expected to be consistent with the returns being generated by the company on its investment in the initial phase of the project,” it said.

At 0950 BST, shares were down 0.5% to 146.11p.