Frankston Hospital Redevelopment Project

After reaching Financial Close in April 2022, the $1.1 billion Frankston Hospital Redevelopment PPP Project (Project) is the largest ever health infrastructure investment in Melbourne’s south-east.

Capella Capital is the infrastructure developer, lead sponsor, financial advisor, equity investor (on behalf of Lendlease) and Project Co asset manager for the Project.

The Exemplar Health consortium also includes Aware Super (as co-investor), Lendlease Building (as D&C Contractor) and Honeywell and Compass Group (as facilities services providers). The design team comprises Bates Smart, Conrad Gargett, WSP and Waterman AHW.

The Project will deliver a new facility integrated with the existing hospital, facilitating Peninsula Health’s model of care and achieving exemplary built form, technology and sustainability outcomes.  It will transform services at the hospital, delivering a new 12-storey clinical services tower and main entrance, 130 more beds, new spaces for mental health and oncology services and 15 new operating theatres. The redevelopment will also deliver expanded women’s and children’s services.

Arranged by Capella Capital, the Project is financed by an innovative multi-tranche debt package issued as a sustainability loan, demonstrating Exemplar Health consortium’s commitment to ongoing sustainability outcomes.

Construction is underway, with completion of the main works forecast to be achieved in 2025.

Key Features

Project Size


Project Team