Additional Investment

RNS Number : 9817K

International Public Partnership Ld

01 July 2014

 



1 July 2014

INPP acquires majority position in Nottingham Building Schools for the Future (BSF) portfolio

International Public Partnerships Limited (INPP) is pleased to announce that it has acquired an additional 72% direct investment in the second phase of the Nottingham Building Schools for the Future (BSF) portfolio, increasing INPP's exposure to the project from 10% to 82%.

The opportunity to acquire the interest in the project has arisen through 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.

INPP will invest £2.75 million for an additional 72% interest from Carillion Private Finance.  Following the sale INPP will hold an 82% interest in the project with the Nottingham Local Education Partnership and the Nottingham City Council holding the other remaining direct project interests. 

The project comprises the Farnborough School and Technology College and caters for over 1000 pupils in the Clifton Estate area.  Like the other BSF projects in which INPP invests, the current investment meets INPP's investment criteria, namely:

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

·     The investment has a long operational pipeline, with a remaining operational term of 24 years;

·     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 level of projected return that INPP regards as attractive compared to current market conditions and demonstrates the value of the pre-emption rights INPP acquired as part of the original BSFI investment.

Rupert Dorey, Chairman of International Public Partnerships, said: "INPP is pleased to have acquired this additional interest in the Nottingham BSF project, further bolstering its BSF portfolio.  We continue to see a very strong pipeline of projects not only through our pre-emptive position in the BSF portfolio but other assets that the Company originates through its Investment Advisor, Amber, and remain well placed to make further investments during the remainder of 2014." 

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 into 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, and the acquisition of this new interest compliments the existing portfolio of over 200 individual schools across the UK.  In total, school projects now represent c.28% of the net asset value (NAV) of the fund.

For further information:

Erica Sibree                                                    [phone]

Amber Fund Management Limited                                

Nick Westlake/Hugh Jonathan                            [phone]/1263

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 115 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term 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 approximately 70 dedicated staff who manage, advise on and originate projects for INPP.

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

 

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