International PPL - INPP grows investment portfolio in United States
05/12/2022 07:00
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RNS Number : 5213I International Public Partnerships 05 December 2022
INPP GROWS INVESTMENT PORTFOLIO IN UNITED STATES
5 December 2022
International Public Partnerships Limited, the listed infrastructure
investment company ('INPP' or the 'Company'), has announced a follow-on
investment in Family Housing for Service Personnel ('FHSP'), one of the
longest-standing social infrastructure sectors in United States ('US')
Public-Private Partnerships ('PPP'), or P3.
The Company has invested approximately US$45 million (c.£37 million) into two
additional interest-bearing subordinated debt instruments underpinned by
security over seven operational P3 FHSP projects, comprising c.21,800 housing
units located across the US.
The additional investment marks the continued growth of the Company's
investment portfolio in the US, with approximately 4 per cent of the portfolio
by investment fair value invested in the US. The introduction of private
sector capital and resources to provide housing for service personnel was
established by US Congress in 1996 and has attracted capital in excess of
US$30 billion from domestic and international institutional investors to date.
The investment meets the environmental and social characteristics under
Article 8 of the EU Sustainable Finance Disclosure Regulation ('SFDR')
designation.
The FHSP projects have the following characteristics:
· A secure revenue stream to 2052 by way of the direct assignment
of the Basic Allowance for Housing for the service personnel who live on the
bases, which is paid by the US government;
· High barriers to entry as the number of on-facility housing units
is limited;
· Positive social credentials through provision of family housing;
· No residual value exposure; and
· A geographically diverse portfolio of housing units across the
US.
The investment was sourced by the Company's investment adviser, Amber Fund
Management Limited ('Amber') and was acquired from Amber's affiliate, Hunt
Companies Inc. ('Hunt'). Hunt is one of the largest owners, managers and
providers of ongoing services in the sector, with interests in approximately
51,800 units in the US. The Hunt group will asset manage and property manage
the projects that relate to this transaction.
In accordance with the Company's procedures for related-party transactions,
the Company sought an independent valuation. In addition, this transaction is
deemed a smaller related party transaction within Listing Rule 11.1.10R and
therefore the Company obtained a fair and reasonable opinion in relation to
the transaction.
As at 2 December 2022, the Company's £250 million revolving credit facility
was undrawn, with c.£17 million committed via letters of credit for near-term
pipeline investments.
Mike Gerrard, Chair of INPP, said: "The Company is well positioned to
originate new investment opportunities in North America, given the strength of
its Investment Adviser's local presence. With an additional investment into
family housing, the Company is increasing its portfolio allocation to the US.
Since our first investment into the US Family Housing for Service Personnel
sector in 2015, our investments have performed strongly and we are confident
of their continued long-term resilience".
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 responsibly 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 growing dividends and the potential for capital
appreciation.
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.
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