Acquisition - Pforzheim Schoo

RNS Number : 9304L

International Public Partnership Ld

14 May 2010

 



14 May 2010

INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED

Acquisition of 97% interest in Pforzheim Schools PPP Project

International Public Partnerships Limited ("INPP" or the "Company") is pleased to advise that it has acquired an additional 97% interest in the Pforzheim Schools PPP project and hence increased its shareholding to a total of 98%. The project consists of the construction and operation of a 1400-pupil central secondary school, Alfons-Kern Schule, under a 30-year PPP contract with the City of Pforzheim. The project was awarded in May 2008 and the majority of construction was completed in September 2009, with the remaining building works on schedule for completion in September 2010. The project is one of the largest PPP school projects in Germany and in 2009 was awarded the Innovation Award for one of the best projects in Germany.

BAM Deutschland AG, a subsidiary of the Royal BAM Group, is responsible for construction under a fixed-price, fixed-time agreement. Royal BAM Group will also be responsible for the ongoing operations through its facilities management subsidiary Müller-Altvatter Gebäudemanagement GmbH. Royal BAM Group operates more than 10 PPP projects in the U.K. and Europe. Debt financing has been provided by DZ Bank AG and DG HYP AG for the entire life of the project.

The purchase price of approximately €1m reflects the acquisition of the asset on a basis that is both immediately accretive to the Company in net asset value terms and is also immediately yield accretive.  

In addition, the project also meets the Company's other key investment criteria including:

·      Indexation of relevant operating costs

·      Long-term, 30 year concession term ending in 2039

·      Majority (98%) ownership and influence over project operations

·      Debt facility in place, and 100% swapped at a fixed rate for the life of the concession.

The project will be overseen by Amber's German asset management executives, Dr. Juergen Bufka and Tim Schlicht.

Keith Dorrian, Chairman of the Company said: "We are delighted to acquire a further investment in the German PPP market. There are a number of school projects expected to be developed by various German states in the coming years. Our investment adviser is following the development of these projects which, if successful, would further strengthen and diversify our German business which already includes our rail operating business, BeNEX."

For further information:

Bianca Francis                                                              [phone]

Amber Fund Management Limited                                              

Nick Westlake                                                               [phone]

Numis Securities          

 

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