Singapore to take over sports hub PPP

● Published 13 Jun 2022 Author: Civi Yap

Sport Singapore (SportSG) will take over a $1.5 billion operational integrated sport, entertainment, and
lifestyle hub PPP – 13 years ahead of its concession period, the statutory board of the Ministry of Culture,
Community and Youth said on Friday (10 June 2022).

This project has seen the development of a national sports hub on a 35 hectare site in
Kallang, south-eastern Singapore. It is the world's largest sports facility PPP to date. The
project will integrate various facilities and will comprise a national stadium with retractable
roof (55,000 capacity), indoor aquatic centre (6,000 capacity), multi-purpose arena (3,000
capacity), commercial space (41,000m2), water sports centre and the existing Singapore
Indoor Stadium. The hub will cater for both land and sea sports and entertainment

SportSG agreed with project company SportsHub Private Limited for the PPP termination. The statutory
board will take over the assets’ ownership and management by 9 December (2022).

SportsHub Private's shareholders are: 

● InfraRed Capital Partners

● Cushman & Wakefield Facilities & Engineering
● Global Spectrum Asia

Under the agreement, there is no penalty for termination. SportSG will pay an amount comprising the
outstanding loan and an open market value. The cost of terminating the PPP arrangement and taking over
the Sports Hub operations will be comparable to the cost of continuing the PPP arrangement until 2035.

The project company has received an annual fee from SportSG to operate and finance the asset since it
commenced operations in 2014. SportsHub Private has a 25-year concession under the DBFO model,
expiring in 2035. 

The project in August 2010 achieved financial close after signing a S$1.45 billion ($1 billion) 10-year soft
mini-perm debt package with 11 lenders and a S$266 million equity bridge with a 3-year, 7-month tenor
from 4 of the lenders.

The consortium in December 2015 closed a roughly S$1.5 billion refinancing with a tenor of 18 years and 9
months, priced from 120 to 145 bp over Sibor. Eight banks punched the ticket.

The termination came as SportsSG aims to gain greater control and flexibility over the sports hub. The
statutory board targets to enable closer integration with the Kallang Alive – an 89ha mixed-use lifestyle
precinct including a football pitch and tennis court.

SportsSG also plans to make the sports hub more accessible to the broader community in Singapore whilst
maintaining its commercial sustainability.

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Singapore Sports Hub reaches FC

● Published 26 Aug 2010 Kiel Porter Contact Author
The Singapore Sports Council (SSC) has reached financial close on its S$1.75 billion
(US$1.29bn) Sports Hub PPP.

A group of 11 banks are providing a term loan of S$1.45 billion (US$1.06bn):

● BNP Paribas
● Bank of Tokyo-Mitsubishi UFJ
● Credit Agricole CIB
● DBS
● HSBC
● NAB
● Natixis
● OCBC
● SMBC
● Standard Chartered
● WestLB

The debt has a 24 year tenor with a balloon payment due after 10 years. Ticket sizes are
understood to vary significantly between the lenders with contributions ranging from S$100
to S$200 million. The debt was oversubscribed by 30 per cent.

Four of the lenders - HSBC, NAB, Natixis and SMBC - are also contributing an equity bridge
loan of S$300 million (US$221m). The project has a debt: equity ratio of 80: 20 The equity
split is as follows:

● HSBC Infrastructure Fund - 82 per cent

● Bouygues - 11 per cent
● Global Spectrum - 4 per cent
● United PREMAS - 3 per cent

Bouygues' Asian subsidiary - Dragages - was named as preferred bidder for the project in
January 2008. The consortium also includes:

● Global Spectrum - Comcast Spectator - PICO

● United PREMAS
● HSBC Singapore
● HSBC Infrastructure Fund
● AON
● ARM
● Arup Sports
● CICADA
● DHI Water & Environment
● DP Architect
● Duffill Watts
● Ernst & Young
● Faithful & Gould
● Knight Frank
● Norton Rose
● Rajah & Tann
 ● World Sport Group

When built the 25-year concession will see the delivery of a national sports hub on a 35-
hectare site in Kallang, south-east Singapore. Government of Singapore is the PPP awarding
authority.

PwC was financial adviser to the SSC with Lovells Lee & Lee (now Hogan Lovells Lee & Lee)
acting as legal counsel. Deutche Bank and Linklaters acted for the Ministry of Finance. 

PMP Legacy was events and programming adviser. Plenary Group also acted as project
adviser to the government.

Faithful and Gould was technical adviser to the lenders with Ashurst providing legal counsel.
Norton Rose was legal counsel to the sponsor. 

Mott MacDonald was environmental adviser while Aon and Willis were insurance advisers to
the lenders and sponsor respectively

Singapore government to bail out sports hub

Gavriel Hollander Contact Author Last Updated 31 Aug 2010

The Singapore government is ready to step in to bail out its long-awaited Sports Hub PPP, as
HSBC continues to look for lenders to the S$1.6 billion (US$1.06bn) project.

A consortium led by Bouygues' Asian subsidiary Dragages was named preferred bidder for
the 25-year concession last January with HSBC acting as MLA.

Construction was slated to start later the same year but the downturn in the market over the
past 15 months has made financing difficult.

HSBC is now looking to form a club of 10-12 commercial banks. None of these is prepared to
take on more S$200 million of the total S$1.4 billion debt package, with many expected to
come in for much smaller tickets.

It is understood that the Singapore Ministry of Finance is negotiating with HSBC over the
level of support it can now offer the project to finally get it away.

A source close to the deal told IJ News that the deal was still considered to be sound and that
there was appetite amongst lenders, but that limited credit availability has forced the
government to take a hand.

Since the PB has been in place, the project has undergone due diligence and functionality
checks, while planning approval for the site has also been granted.
Questions:
1: Summarize in three sentences for a Bank Credit committee what this project is about, both
from an industrial and financing perspective.
2. Using your course material, draft a transaction scheme presenting the initial (2010) PPP
financing structure of this sportshub in Singapore. Present on this scheme in different colors:
a. the key parties involved and, for each, their function in the deal
b. the cash in and out - flows
c. all contracts with their names
3. Do you expect this PPP to be an Authority -pay, User-pay or mix of the two structures. Why?
What does this imply risk wise for:
a. the sponsors,
b. the Authority,
c. the lending banks?
4 Who do you expect to be the borrowing entity of the Equity Bridge Loan? Explain in detail