INPP acquires additional BSF interest

RNS Number : 3509E

International Public Partnership Ld

05 May 2017

 

5 May 2017

INPP acquires additional Building Schools for the Future (BSF) interest

International Public Partnerships Limited ("INPP" or the "Company") is pleased to announce that it has acquired an additional interest in the Wolverhampton Building Schools for the Future ("BSF") project (the "Project"). INPP will commit a further £1.536 million to acquire Carillion Private Finance's 8% indirect investment in each of phase I and phase II of the Wolverhampton BSF scheme, growing the Company's existing 82% investment in the Project to 90%. 

The opportunity to acquire the additional interest in the Project was secured through pre-emption rights that INPP gained as part of its ownership of Building Schools for the Future Investments LLP ("BSFI"). INPP acquired BSFI from the Department of Education and Partnerships UK in August 2011. BSFI was an investment delivery vehicle designed to refurbish secondary schools across the country. 

The Project comprises three secondary schools, being Heath Park Academy in the Fallings Park area, St Matthias School in the Wardle area and Highfields Science Specialist School in the Penn area of Wolverhampton. 

Like the other BSF projects in which INPP invests, the current investment meets INPP's investment criteria: 

·      The investment debt is non-recourse at the project level and matched to the life of the Project;

·      The Project has a long operational life with the 25 year phase II concession due to expire on the 31 August 2040;

·      The investment conforms to the typical UK BSF PFI project funding structure with a well-established and standard form risk framework;

·      The Project is operational and yielding and will contribute to INPP's portfolio return immediately upon acquisition.

The investment has been completed at a projected return that INPP regards as attractive compared to current market conditions and will be funded through existing cash balances.

About the BSF portfolio

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 replaced, the schools which were the subject of the original programme continue to be actively developed and managed.

INPP originally invested in the BSF programme when it acquired the government's interest in the BSFI in August 2011. Since this time, the Company has built up considerable experience in managing investments in schools delivered under PFI and PPP programmes. 

For further information:

Erica Sibree [phone]
Amber Fund Management Limited 

Hugh Jonathan [phone]
Numis Securities 

Ed Berry [phone]
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'), regulated asset and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 127 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the UK, Europe, Australia and North America.  INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases typically of 25-40 year concessions.

Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and has over 100 dedicated staff who manage, advise on and originate projects for INPP.

 

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