BBGI Global Infrastructure agrees three social infrastructure investments and sets up £50m placing – BBGI Global Infrastructure (BBGI) has reached agreements to acquire stakes in three social infrastructure investments in the UK. They consist of a 33.33% interest in the Aberdeen Western Peripheral Route, a 100% interest in Ayrshire and Arran Hospital, and a 100% interest in North West Fire & Rescue. BBGI says that each asset is classified as availability-based under the investment policy of the company and is in alignment with its ESG principles. BBGI also notes that the purchase price of the three investments remains confidential at this time. The consideration for the interests is being funded from drawing upon the company’s new £230m corporate revolving credit facility, announced on 1 June 2021 and existing cash resources (click here to read more on this.).
‘The current portfolio benefits from 100% availability-based assets of which 99% are operational’
BBGI released the following with regard to the new investments:
- Aberdeen Western Peripheral Route: Encompasses the design, construction, financing, operations and maintenance of 12 km of the existing roadway (upgraded) and 47 km of new dual carriageway including two significant river crossings. The final section of the road opened in 2019 and the concession runs until 2047. The project was developed in compliance with strict EU environmental legislation and has reduced congestion in Aberdeen by approximately 46% and HGV traffic on local routes by approximately 55%. Availability payments are received from the Scottish Ministers. The completion of this acquisition is subject to final funder clearance, which is expected imminently.
- Ayrshire and Arran Hospital: Consists of the design, construction, financing and maintenance of a 206-bed acute mental health facility and community hospital in Irvine, North Ayrshire, Scotland. The hospital became operational in 2016 and the concession runs until 2041. The facility has significantly increased the availability of and access to mental health services and treatment in the region. The facility was awarded a BREEAM* rating of Very Good and is equipped with low or zero-carbon heating and power technology. Availability payments are received from the Ayrshire and Arran Health Board and is backed by the Scottish Government. The completion of this acquisition occurred on 6 July 2021.
- North West Fire & Rescue: Consists of the design, construction, financing, maintenance and rehabilitation of 16 new community fire stations in the North West of England located at various sites in Merseyside (7), Lancashire (4) and Cumbria (5). The facilities became fully operational in 2013 and the concession runs until 2038. The facilities play an integral role in delivering fire safety and protection to more than 500,000 people in the local communities. The facilities were awarded a BREEAM* rating of Very Good and sustainability measures have been integrated into the buildings. Availability payments are received from the Cumbria County Council, Lancashire Combined Fire Authority and Merseyside Fire and Rescue Authority. The completion of this acquisition occurred on 6 July 2021.
Following completion, BBGI notes that it will own a portfolio of 54 infrastructure investments in the transport, healthcare, education, blue light (i.e. fire and police stations) and other services sectors which are located in Australia, Canada, Continental Europe, the UK and the US. The current portfolio benefits from 100% availability-based assets of which 99% are operational. BBGI also maintains a diversified supply chain in regard to facilities management and operational and maintenance contractors.
Targetting £50m placing raise
BBGI also announced a proposed placing targeting to raise approximately £50m through an issue of ordinary shares of no par value. The placing shares will be issued at a price of 166p, representing a discount of 7.1% to the price per ordinary share of 178.6p as at the 6 July 2021 close.
BBGI noted that “the company has this morning announced the acquisition of three further operational social infrastructure investments in the UK. The projects include a 33.33% interest in the Aberdeen Western Peripheral Route, a 100% interest in Ayrshire and Arran Hospital, and a 100% interest in North West Fire & Rescue, all of which are classified as availability-based under the investment policy of the Company and align with BBGI’s ESG principles. Further information on these projects is included in this morning’s announcement by the Company via RNS.
The company’s recent acquisitions demonstrate its ability to continue to grow its availability-based portfolio whilst being selective in a competitive environment. The company’s strategy is to remain disciplined in its approach to investing in availability-based assets only, that also align with our ESG principles, and not in higher risk infrastructure asset classes. The company will continue to track both primary development opportunities and secondary acquisition opportunities in a variety of essential social infrastructure such as schools, healthcare, blue light (fire and police stations), modern justice facilities, leisure and community facilities and transport, procured using availability-based investment models as well as other availability sectors that are suitable for its investment strategy.
BBGI now owns a globally diversified portfolio of 54 essential social infrastructure investments which are geographically located in Australia, Canada, Continental Europe, the UK and the US. The Company seeks to limit and reduce investment risk where possible, with the current portfolio benefitting from 100% availability-based assets of which 99% are operational.
The company will use the net proceeds of the placing to pay down its RCF and provide the company with additional financial flexibility to pursue its pipeline of near-term opportunities.”
BBGI : BBGI Global Infrastructure agrees three social infrastructure investments and sets up £50m placing