Client
New Zealand Department of Corrections
Location
Waikeria, New Zealand
Waikeria Mens Prison
Waikeria Prison Development is New Zealand's most forward-thinking correctional facility - a modern 600-bed high-security complex in the Waikato region housing the country's first dedicated mental health and addiction treatment unit. Designed around rehabilitation and the wellbeing of Maori prisoners, it represents a new chapter in how New Zealand approaches custodial care.
Financial Close
April 2026
Construction Period
2018 - 2025
Concession Period
25 years
Handback
June 2050
Client
New Zealand Department of Corrections
Location
Waikeria, New Zealand
Sponsor/Investor
Invesis, Capella Capital, Pacific Partnerships
Consortium
Cornerstone Infrastructure Partners
Engineering Procurement and Construction
CPB Contractors
Operations and Maintenance
Cushman & Wakefield
Financial Adviser
Capella Capital
Acquiring a long-term stake in New Zealand's most ambitious correctional PPP through the secondary market
The Waikeria Prison Development PPP was originally awarded in 2018, with CPB Contractors delivering construction and Cushman & Wakefield providing FM services under a 25-year concession. The 600-bed high-security facility - including New Zealand's first 100-bed mental health and addiction treatment unit - was completed in April 2025.
In April 2026, Invesis and Capella Capital jointly acquired equity interest from the outgoing investor, joining existing shareholder Pacific Partnerships. The transaction represented Invesis's first investment in New Zealand - and reflected the confidence placed in Invesis as a long-term, active equity partner across the Australasian PPP market.
The facility generates 100% availability-based revenues with no custodial risk transferred to the SPV, and forms a key component of the New Zealand Department of Corrections' Long-Term Network Plan to address sustained growth in prisoner numbers.
Integrating New Zealand's first mental health and addiction treatment unit within a high-security correctional facility
Waikeria Prison Development is defined by its commitment to rehabilitation alongside security. At its heart is New Zealand's first dedicated 100-bed mental health and addiction treatment unit - addressing one of the most significant drivers of reoffending with genuine therapeutic care within a custodial setting.
X-shaped accommodation units improve prisoner observation while maintaining humane sightlines. Vocational training workshops, release-to-work programmes and a dedicated Maori Focus Unit support reintegration, and a therapeutic model of care applies to all prisoners regardless of conviction status. The Tangata Whenua Liaison Group provides ongoing cultural input across design, landscaping and heritage matters - ensuring the facility reflects and respects its relationship with the land and Maori communities.
Restoring wetlands, reducing energy and supporting Maori wellbeing across the Waikato region
- A heat recovery system reduces heating loads by approximately 70%, complemented by a Battery Energy Storage System paired with solar to reduce reliance on diesel generators.
- Natural light is maximised throughout the facility, with large thermally efficient windows providing therapeutic benefits for prisoners and staff alongside energy savings.
- The Ecological Mitigation Plan restores natural wetland hydrology along the Mangatutu Stream and Puniu River, introduces native flora across the site and includes fencing, pest control and stream shading to support local biodiversity.
- Rainwater is harvested for irrigation, and low-velocity stormwater systems protect downstream ecology across the 60-hectare site.
- The Community Impact Forum - comprising local councils, Iwi, education providers, social services and NZ Police - meets quarterly to review impacts on housing, employment and local training opportunities.
- Priority recruitment focused on Waikato residents, with a minimum of ten regional events before expanding nationally.
