Acquisition

RNS Number : 5836G

International Public Partnership Ld

02 July 2012

 



2 July 2012

INPP acquires additional interests in Building Schools for the Future education projects

-    Additional £30.3 million to be invested in eight schools projects -

International Public Partnerships Limited (INPP) is pleased to announce that it has agreed to acquire additional interests in eight Building Schools for the Future (BSF) education projects from Carillion Private Finance Limited.

The opportunity to make such additional investments have arisen through the pre-emptive rights that INPP gained as part of its 100% stake in Building Schools for the Future Investment (BSFI) which it acquired from the Department of Education and Partnerships UK in August 2011 for £60 million.

INPP expects to invest around £30.3 million and on full completion of the acquisition will hold majority investment interests in BSF school projects in Wolverhampton, Nottingham, Rochdale, Durham and South Tyneside and Gateshead and a 46% investment in Tameside BSF project (where Tameside Metropolitan Borough Council will hold an equal stake).

These investments were identified as targets for INPP as part of the recent £200m Placing, Open Offer and Offer for Subscription by the Company which was completed on 25 June. The acquisition takes immediate effect with respect to the investment in the Tameside BSF project and is subject to the satisfaction of certain conditions relating to third party consents with respect to the other BSF projects.  These are expected to be satisfied by early September.

The BSF programme was an initiative launched in 2004 by the previous government, with the aim of rebuilding or re-modelling every secondary school in England over a 20 year period.  Although the longer term BSF programme has now been cancelled by the Government, the schools which were the subject of the programme prior to its cancellation continue to be actively developed and managed.

INPP has built up considerable experience in managing investments in schools delivered under PFI and PPP programmes, and the acquisition of these new interests compliments the existing portfolio of over 200 individual schools across the UK.  In total, school projects now represent 33% of the net asset value (NAV) of the fund.

The new investments meet INPP's key investment criteria and have a number of attractive features including:

·     The investment allows INPP to consolidate minority positions acquired through original Building Schools for the Future Investments (BSFI) acquisition

·     Each investment is subject to debt that is non-recourse at the project level and matched to the life of the project

·     The investments comprise long duration projects, with an average remaining life of 24 years

·     The investments conform to a typical UK PFI project funding structure with well established and standard form risk framework

·     The majority of the projects are already contributing yield

·     Some of the schools in Wolverhampton are currently under construction and, consistent with its other construction assets, INPP would expect to benefit from an uplift in NAV in the portfolio, provided the construction assets complete as anticipated. 

Keith Dorrian, Chairman of International Public Partnerships, said: "INPP is delighted to have agreed to acquire these additional interests in eight BSF projects.  The opportunity is evidence of the value of the pre-emption right INPP acquired as part of the BSFI investment last year, and we hope to benefit further from this position over the coming years.

We're also pleased to be immediately putting to work a significant part of the proceeds of the recent capital raising toward assets which will be accretive to the portfolio."

For further information:

Erica Sibree                                                     [phone]

Amber Fund Management Limited                                

Nick Westlake/Hugh Jonathan                            [phone]/1263

Numis Securities       

Ed Gascoigne-Pees/Ed Berry                              [phone]/7297
FTI Consulting

Notes to Editors:

About International Public Partnerships (INPP):

International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP), private finance initiative (PFI) and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 119 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and renewable energy projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term government-backed yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of more than 60 dedicated infrastructure specialists which originate and source a strong pipeline of projects for INPP.

Visit the INPP website at www.internationalpublicpartnerships.com for more information.

 

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