Construction is set to begin shortly on the first phase of the Christchurch Men’s Prison redevelopment after the consortium delivering the project reached financial close.

Southern Renewal Partners has announced it had secured financing for the $440 million construction project, clearing the way for work to begin at the operational prison in Templeton.

The redevelopment is expected to employ up to 600 people at the peak of construction, supporting Canterbury jobs, businesses and regional supply chains.

Phase One will deliver 240 new high security prison beds, a new health centre and a 52 bed Intervention and Support Unit for prisoners experiencing serious mental health issues.

It will also include a new receiving office, property store and other infrastructure needed to support the prison’s daily operations.

Construction is expected to be completed in late 2029, with the new facilities scheduled to become operational by mid-2030.

The Southern Renewal Partners consortium is led by infrastructure investor Plenary Group, which holds a 65 percent interest in the project.

International construction company Webuild holds a 25 percent interest and will lead the design and construction joint venture, alongside Canterbury based Leighs Construction, which holds the remaining 10 per cent.

Serco will provide asset management and facilities maintenance services.

Financing is being provided by ANZ, HSBC, ING, Intesa Sanpaolo and Westpac.

Under the public private partnership, the consortium will finance, design, construct and maintain the new facilities for 25 years after construction.

The Department of Corrections will continue to operate the prison and remain responsible for all prisoners and custodial services. The prison is not being transferred to private management.

Plenary Group Chief Investment Officer Patrick Lauren said the consortium was honoured to have been selected to deliver the redevelopment.

“The Southern Renewal Partners team is honoured to be entrusted to deliver this important redevelopment, one that provides local jobs alongside a stronger and safer prison system,” Lauren said.

“We are delighted to bring our infrastructure capabilities to New Zealand and look forward to working with the Department of Corrections to get to work and deliver on the promise.”

Leighs Group chief executive André Lovatt said the Christchurch founded construction company was proud to be involved.

“Leighs has deep roots in Canterbury, and we’re genuinely proud to be part of a strong and experienced team delivering facilities of this scale and significance,” Lovatt said.

Webuild Senior Executive Vice President Operations Oceania Marco Assorati said the new facilities would be designed to support rehabilitation and improve safety and operational outcomes.

“Our focus is on delivering modern, safe and sustainable facilities that support rehabilitation, strengthen operational outcomes, and reflect New Zealand’s commitment to a safe and effective corrections system,” Assorati said.

Christchurch Men’s Prison is the primary high security prison in the South Island and covers the largest geographical catchment of any prison in the country.

The redevelopment was announced after concerns about ageing buildings, seismic resilience and prison infrastructure that was no longer considered suitable for modern health, mental health and rehabilitation services.

Several high security beds were decommissioned in 2022 because of quality and seismic issues, resulting in some high security prisoners being transferred to Otago Corrections Facility.

Corrections Minister Mark Mitchell previously said the redevelopment would provide safer and more appropriate facilities for staff and prisoners.

He said the new Intervention and Support Unit would provide specialist support for prisoners at risk of harming themselves or others, while the health centre would accommodate nurses, doctors, psychiatrists, psychologists, physiotherapists, optometrists and dentists.

The Government previously estimated the broader capital cost of phase one at between $700 million and $800 million. The newly announced $440 million figure relates to the construction project reaching financial close through Southern Renewal Partners.

The redevelopment is planned across four phases.

Phase Two is expected to add another 240 prisoner places by August 2032. Two possible later phases, which remain subject to separate business cases and government decisions, could add a further 540 beds.

If all four phases proceed, the wider Christchurch Men’s Prison redevelopment could eventually deliver 1020 new prison beds.

Serco Asia Pacific chief executive Andrew Head said the company would bring experience maintaining complex and highly secure justice facilities.

“We look forward to working with our partners to support a modern, safe and resilient facility that delivers long term value for the New Zealand Government and community,” Head said.