Acquisition (3116M)
August 12 2011 - 10:45AM
UK Regulatory
TIDMINPP
RNS Number : 3116M
International Public Partnership Ld
12 August 2011
12 August 2011
INPP acquires interests in Building Schools for the Future
Investments
International Public Partnerships Limited (INPP) is pleased to
announce that it has acquired the UK Government's investment
interest in the Building Schools for the Future (BSF)
programme.
INPP has acquired 100% of the interests in Building Schools for
the Future Investments LLP (BSFI) from the Department for Education
and Partnerships UK. BSFI will be acquired for approximately GBP60
million which will be funded by INPP partly through available cash
and partly through use of its corporate debt facility.
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, BSFI continues to hold between a 10% - 20% interest in
all BSF projects developed to date utilising private sector
investment capital. There are some 48 such projects in which BSFI
has investment.
INPP has built up a wealth of experience in managing investments
in schools delivered under PFI and PPP programmes and the
acquisition of BSFI compliments the existing portfolio of 106
schools across the UK. In total, school projects will represent 32%
of the net asset value (NAV) of the portfolio.
The portfolio meets INPP's key investment criteria and
attractive features include:
-- Project revenues are predominantly inflation linked and are
100% availability based
-- Debt is non-recourse at the project level and matched to the
life of the project
-- An attractive 70:30 construction: operational split between
schools in the portfolio, mirroring the current balance in the
wider INPP portfolio
-- Long duration projects, with an average remaining life of 24
years
-- Typical UK PFI project funding structure with well
established and standard form risk framework
-- Projects are well diversified in terms of their geographic
spread and the number of counterparties and local authorities
participating in the scheme
-- No cross collateralisation of individual investments in the
portfolio
-- BSFI benefits from enhanced shareholder rights compared to
other investors in the underlying PFI school projects
-- BSFI has the opportunity through pre-emption rights to
increase its holding in the underlying PFI school projects if other
shareholders seek to sell their interests
-- The projects are already contributing yield and will continue
to yield through the portfolio's life
As noted above, the majority of the portfolio is operational
(c.70% by value), which is broadly consistent with the level of
operational assets currently in INPP's portfolio. Of the 19
projects in construction, all but one project is due to be
operational by October 2012 with the final project due to be
operational by September 2014. 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.
Giles Frost, Director of Amber Infrastructure Limited, said:
"INPP is delighted to have acquired the UK Government's investment
portfolio in the Building Schools for the Future programme. This is
a significant acquisition for INPP and our largest single
commitment to date.
"INPP will bring significant expertise to the BSF assets, having
built a strong track record of managing our existing portfolio of
106 schools. In addition, the stake provides an exciting means to
further extend our presence in the sector through the pre-emption
rights and potential development opportunities associated with the
portfolio."
For further information:
Erica Sibree +44 (0)20 7939 0558 Amber Fund Management
Limited
Hugh Jonathan/Nick Westlake +44 (0)20 7260 1263/1345 Numis
Securities
Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297 Financial
Dynamics
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 60 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters and transport 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 50 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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