International Public Partnership Ld Additional Investment in Diabolo (7590O)
September 24 2013 - 6:53AM
UK Regulatory
TIDMINPP
RNS Number : 7590O
International Public Partnership Ld
24 September 2013
24 September 2013
INPP acquires additional interest in Northern Diabolo
Project
- Additional EUR33.3million to be invested in remaining 25% of Project -
International Public Partnerships Limited (INPP), the FTSE 250
listed infrastructure investment company, is pleased to announce
that it has, through a subsidiary, acquired the remaining 25%
economic interest in the Northern Diabolo Project (the Project) not
already owned by it from a subsidiary of HSH Nordbank.
The opportunity to make the additional investment has arisen
through the pre-emptive rights that were obtained when the
Company's existing economic 75% interest was acquired in 2007. The
additional 25% stake was acquired for EUR33.3 million (GBP28.1
million) and is expected to be accretive to the portfolio.
Following acquisition INPP will own 100% of the economic interest
in the Project and the proportion of its total assets in respect of
which INPP owns 100% will increase to 70.6% on a value basis.
The Northern Diabolo Project is a Belgium-based project that
provides improved rail access to Brussels airport. The Project
involved building and financing a rail link over a five year
construction period and thereafter maintaining if over a concession
period of 35 years.
The construction programme, which was overseen by the Company'
Investment Advisor, Amber Infrastructure, and was successfully
completed on time and to budget on 25 February 2012, saw a new
tunnelled rail connection under Brussels airport runway, linking
the airport to the new Brussels-Antwerp High Speed rail line.
The new investment meets INPP's key investment criteria and has
a number of attractive features including:
-- Provides immediate yield to investors
-- High level of familiarity with the Project given the
Company's existing investment and that the Investment Advisor has
been involved from Project's inception
-- Long duration asset with c. 34 years remaining on the scheduled life of the concession
-- Project revenues which are linked to future inflation
-- Limited construction risk given that the Project entered into
operational phase in 2012 and the transition to full operations
continues successfully
-- The transport exposure in INPP's portfolio is increased from
21% at 30 June 2103 to 24% (on a pro forma basis). The revenues
receivable by INPP from the Diabolo project are based on an indexed
fixed fee basis and with part of the revenues being dependent on
passenger throughput but with protective downside mechanisms.
The acquisition will befunded through INPP's existing cash
resources.
Keith Dorrian, Chairman of International Public Partnerships,
said: "INPP is delighted to have acquired the remaining interest in
the Diabolo Project. The opportunity is evidence of the value of
the pre-emption rights that exist within the INPP portfolio and the
benefit in developing 'home-grown' opportunities.
Given the increasing level of interest for assets in the
secondary market we are pleased to be able to deliver accretive
assets into the portfolio outside competitive auction-based
processes."
For further information:
International Public Partnerships
Limited
Erica Sibree +44 (0)20 7939 0558
Numis Securities
Hugh Jonathan/Nick Westlake
+44(0)20 7260 1263/1345
FTI Consulting
Ed Berry/Harry Stein +44 (0)20 7269 7297/7141
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 122 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 of around 70 dedicated staff who manage, advise
on and originate 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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