International PPL - Acquisition of First New Zealand Investments
09/12/2022 07:00
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RNS Number : 1948J International Public Partnerships 09 December 2022
ACQUISITION OF FIRST new zealand investments
9 December 2022
International Public Partnerships Limited ('INPP' or 'the Company'), the FTSE
250 listed infrastructure investment company, has agreed binding terms to
acquire five infrastructure investments in New Zealand for c. NZD 200 million
(the 'Acquisition') from Morrison & Co managed Public Infrastructure
Partners.
The Acquisition marks the Company's first investment in New Zealand and will
provide further diversification of INPP's investment portfolio as well as a
platform which should generate further investment opportunities into the
country.
The portfolio comprises the following five projects, where the Company will
have 100% ownership:
· three schools projects, representing an investment in 11 schools
across the breadth of New Zealand, all of which were procured via
public-private-partnership ('PPP') concessions with the NZ Ministry of
Education;
· the Auckland Prison, where the project company only has
responsibility for the provision and maintenance of physical assets with the
custodial services provided independently by the New Zealand Department of
Corrections. This was procured under a PPP and
· a purpose-built student accommodation facility at the Auckland
University of Technology ('AUT') underpinned by a service agreement with AUT
guaranteeing 96% of rental occupancy and benefitting from high historic
occupancy levels (even during Covid-19).
These high-quality infrastructure investments are already operational,
delivering long-term stable cash flows linked to inflation. The return profile
is significantly based upon government backed revenue streams generated
through standard PPP contracts in another highly rated, stable OECD geography
for INPP. The average remaining investment life of the five projects is over
24 years.
In growing the Company's contribution to essential infrastructure, the
investments meet the Company's environmental and social commitments, under
Article 8 of the EU Sustainable Finance Disclosure Regulation ('SFDR')
designation.
The portfolio acquisition is subject to regulatory approval, including New
Zealand's Overseas Investment Office ('OIO'), financier and counterparty
consents after which time financial close is expected to occur in Q2 2023.
As at 8 December 2022, the Company's £250 million revolving credit facility
was £29.3 million drawn, with c.£17 million committed via letters of credit
for near-term pipeline investments.
Mike Gerrard, Chair of INPP, said: "We have entered the New Zealand market
with a portfolio of high-quality assets primarily within the education sector.
This investment builds on our education sector expertise and includes six
large secondary schools and five primary schools located across the country.
We'll also be providing housing for around 200 students at AUT's North Shore
Auckland campus.
"The five new investments further enhance INPP's growing Australasian
presence, which will represent approximately 11 1 (#_ftn1) % by investment
fair value, of our international portfolio and provides us with a strong
platform for growth. New Zealand is a mature infrastructure market,
complementing our proven track record over the past decade in Australia."
ENDS.
For further information:
Erica Sibree/Amy
Edwards
+44 (0) 7557 676 499 / (0) 7827 238 355
Amber Fund Management
Limited
Hugh
Jonathan
+44 (0)20 7260
1263
Numis Securities
Ed Berry/Mitch
Barltrop
+44 (0) 7703 330 199 / (0) 7807 296 032
FTI Consulting
About International Public Partnerships:
INPP is a listed infrastructure investment company that invests in global
public infrastructure projects and businesses, which meets societal and
environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 140 infrastructure projects
and businesses. The portfolio consists of utility and transmission, transport,
education, health, justice and digital infrastructure projects and businesses,
in the UK, Europe, Australia and North America. INPP seeks to provide its
shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and
consists of over 170 staff who are responsible for the management of, advice
on and origination of infrastructure investments.
(#_ftnref1)
1 Estimate based on other things being equal.
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