Acquisition

Babcock&Brown Public Ptnrships Ltd
27 November 2007


Press Release


  Babcock & Brown Public Partnerships Agrees to Acquire a Portfolio of Assets

Babcock & Brown Public Partnerships Limited (LSE: BBPP) ('BBPP' or the
'Company'), the internationally focused public infrastructure fund, today
announced that, subject to shareholder approval, its subsidiaries will acquire a
portfolio of five investments (the 'Projects') from subsidiaries of Babcock &
Brown (ASX: BNB) for an aggregate maximum price of approximately £49.8 million
(including deferred equity contribution).

These acquisitions will take the number of investments in the BBPP portfolio to
30 and increase the geographical diversity of the portfolio. These acquisitions
will also result in the Company having substantially invested the cash raised at
the time of its IPO within the timeframe previously indicated to investors.

The interests in the Projects are as follows:

  • 100% of the equity and (when issued) subordinated debt interests in the
    Dublin Criminal Courts project, an Irish PPP project to design, build,
    operate and maintain the new central criminal courts complex in Dublin
  • 95% of the equity and 100% of the subordinated debt interests in the
    Amiens Hospital project, a French PPP project to design, build, finance and
    maintain a medical equipment sterilisation facility for the benefit of
    hospitals in the north of France led by the Centre Hospitalier Universitaire
    d'Amiens
  • 25% of the equity and subordinated debt interests in the New South Wales
    Schools project, an Australian PPP project to design, construct, finance,
    operate and maintain ten new schools for the New South Wales Department of
    Education and Training
  • 100% of the equity and any subordinated debt interests in the Maesteg
    School project, a PPP Project in Wales for the construction, maintenance and
    financing of a new build secondary school in Maesteg in South Wales; and,
  • 37.5% of the equity and subordinated debt interests in the Diabolo
    project, a Belgian PPP project to design, build, finance and maintain an
    upgrade to the rail links between the existing Brussels Airport railway
    station and the Belgian rail network.

The aggregate consideration payable includes an amount equal to the amount that
the relevant Seller is obliged to contribute by way of deferred equity in the
Amiens Hospital Project, the Dublin Criminal Courts Project and the Diabolo
Project, respectively. For the purposes of the Listing Rules, the aggregate
value of the gross assets being acquired amounts to approximately £84.2 million.
All five projects are currently under construction and will become operational
between 2008 and 2012. On acquisition of these assets, the BBPP portfolio will
be 64% operational (cash generating) and 36% under construction.

Keith Dorrian, Chairman of the Board of Directors of BBPP, said, 'We are pleased
to be acquiring these high quality assets that add further geographical
diversity our portfolio. These acquisitions highlight the benefits of BBPP's
relationship with Babcock & Brown as well as BBPP's ability to capitalise on the
growth and internationalisation of PPP style initiatives.

'The Company will finance the acquisitions from cash available for investment
raised at the time of the IPO which, as expected, is now substantially invested
prior to the end of 2007.'

Giles Frost, on behalf of Babcock & Brown Investment Management Limited, the
Investment Adviser to the Company said, 'Public infrastructure investment is a
growth sector in many countries. This transaction confirms that public private
partnerships (PPPs) are a worldwide business and, more importantly, that the
Company continues to have the ability to access high quality investment
opportunities internationally.'

The Company and/or its subsidiaries have entered into various conditional
acquisition agreements with Babcock & Brown Investment Holdings Pty Ltd, Babcock
& Brown Sarl, Babcock & Brown Schools 2 Investment Pty Limited and Babcock &
Brown European Investment Sarl (together, the 'Sellers') to acquire the
interests in the projects described above.
For the purposes of the Listing Rules, each of the Sellers is a related party of
the Company by virtue of each of them being an associate of Babcock & Brown
Limited, the ultimate parent company of Babcock & Brown Investment Management
Limited, which is the investment adviser to the Company. Consequently, the
acquisitions are related party transactions under the Listing Rules and
completion of the acquisitions is subject to the approval of the Company's
Shareholders.

A notice has today been sent to shareholders convening an Extraordinary General
Meeting of the Company at 10.30 a.m. on 14 December 2007 to approve the
Resolutions. The extraordinary General Meeting will be held at the offices of
Heritage International Fund Managers Limited, Polygon Hall, PO Box 225, Le
Marchant Street, St Peter Port, Guernsey GY1 4HY. The Directors are recommending
BBPP shareholders to vote in favour of the resolutions at the Extraordinary
General Meeting.

A copy of the circular seeking shareholder approval is available to the public
for inspection at the offices of Lovells LLP, Atlantic House, Holborn Viaduct,
London EC1A 2FG and at the Document Viewing Facility, 25 The North Colonnade,
Canary Wharf, London E14 5HS until 14 December 2007.

For further information, please contact:

Babcock & Brown: [phone]

Investors - Bianca Francis
Media - Anthony Kennaway

Notes to Editors

About Babcock & Brown Public Partnerships Limited:

Babcock & Brown Public Partnerships Limited is a Guernsey incorporated, London
Stock Exchange listed company. The Company offers shareholders an exposure to
investment in infrastructure assets, particularly those with a public or social
character such as those developed under public bodies under private finance
initiative or public private partnership procurements.

The Company floated on the main market of the London Stock Exchange on 9
November 2006 and on 16 November 2007 had a market capitalisation of £321.8
million.




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