International Public Partnership (INPP) has announced that it has reached financial close on ten Building Schools for the Future (BSF) interests from Balfour Beatty, investing £72.3m. INPP already held 10% interests in seven of the Balfour Beatty investments in question, and as a result of the transaction has increased its stake to 90% in each scheme. INPP has also acquired new interests of between 80% to 99% in a further three BSF schemes previously under Balfour Beatty’s ownership.
INPP says that the investment opportunity was secured through the pre-emption rights it gained as part of its purchase of Building Schools for the Future Investments LLP (BSFI) from the Department of Education and Partnerships UK in August 2011.
INPP says that the projects have long operational lives with a remaining operational term of, on average, 21 years; the underlying projects are operational and yielding and will contribute to INPP’s portfolio return immediately upon acquisition; and the investments’ debt is non-recourse at the project level and matched to the life of the project.
INPP says that it funded the acquisition from the £125m of capital it raised in July 2016 and that, following this transaction, the balance of the funds raised is £26.6m, all of which is earmarked for committed investments, notably the Tideway project. INPP says that it has c.£141.6 million by way of letters of credit from its £300m revolving credit facility.
International Public Partnership closes on 10 Building Schools for the Future interests : INPP