International Public Partnership Ld Federal German Ministry of Education Acquisition (5104Y)
January 27 2014 - 2:00AM
UK Regulatory
TIDMINPP
RNS Number : 5104Y
International Public Partnership Ld
27 January 2014
27 January 2014
Acquisition of Federal German Ministry of Education and Research
in Berlin
International Public Partnerships Limited ("INPP" or "the
Company"), the FTSE 250 listed infrastructure investment company,
is pleased to announce that it has agreed to acquire a 97% equity
interest and 100% of the subordinated debt in the PPP project that
will deliver the new office building of the Federal German Ministry
of Education and Research in Berlin ("BMBF Project"). The Ministry
provides funding for research projects and institutions and sets
general educational policy, including providing student loans in
Germany.
The interests will be acquired from the Company's Investment
Advisor, Amber Infrastructure ("Amber"), for EUR11.9m (GBP10.0m),
following an independent valuation prepared by KPMG.
Construction on the BMBF Project, which started on 1 August
2011, is being delivered through a turnkey contract with BAM
Deutschland AG, which retains a residual stake in the share capital
of the project. The construction program is presently running to
schedule and is expected to complete at the end of July 2014.
The new office building comprises two connected buildings on a
c. 13,400 sqm piece of land owned by the Federal Bureau of Real
Estate Projects (BIMA), which is the German Government Agency for
Real Estate, with an entire gross building area of c. 55,500 sqm.
Upon completion, the building will provide space for around 1,000
employees and Amber will continue to provide Asset Management
services to the project.
Amber has been responsible for the development of the BMBF
Project since August 2011, following a successful EU-wide tender
process run by the BIMA comprising planning, construction,
facilities management and financing.
The investment further underlines INPP's ability, through its
Investment Advisor, to access a diverse pipeline of international
investment opportunities rather than through those that are
'pre-owned' or acquired through the secondary market. INPP has
significant investment experience in the domestic German
infrastructure market including existing assets; BeNEX, a public
passenger transportation operator with several concession across
Germany, and Pforzheim Schools with Germany continuing to offer
good investment opportunities.
Features of the project include:
-- Availability based - standard availability payment mechanism
based German PPP project supported by the Federal Republic of
Germany
-- Limited construction risk - all construction milestones to
date achieved within schedule and on budget
-- Limited facilities management (FM) and lifecycle risk - all
key operational risks, including lifecycle replacement and
hard/soft FM, are passed through to the FM contractor
-- No refinancing or interest rate risk - project debt is
matched to the life of the concession
-- Strong yield contribution - BMBF Project is currently
anticipated to be fully operational in August 2014 with a first
distribution expected later in the year
-- Long project life - 27 year contract following project completion
The acquisition will be funded through INPP's existing cash
resources.
Protocols provided in the Investment Advisory Agreement have
been followed with respect to the sale of the BMBF Project from
Amber to INPP, including the establishment of separate buy side and
sell side teams within Amber. KPMG was engaged to provide an
independent valuation opinion and LPA Rechtsanwält Steuerberater
was engaged to independently manage the contractual negotiation on
behalf of INPP.
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Berry/Jack Hickey +44 (0)20 7269 7297/7196
FTI Consulting
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 approximately 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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