New Danish portfolio for International Public Partnerships – International Public Partnerships has acquired an interest in a portfolio of four Danish public-private partnerships projects delivering availability-based, long-term, predictable cash flows. The company now holds a majority interest in the portfolio, which was bought for £14m.
This is the company’s first investment in Denmark and provides a platform for further investment opportunities into the region. The investment adviser Amber Infrastructure is building its presence in the region.
The projects provide essential infrastructure and are spread across Denmark. They include:
- a specialist land registry court archive building in Hobro that accommodates 150 public sector employees;
- a hospital car parking facility with c.550 parking spaces adjoined to a regional hospital in Randers;
- a 1,000-pupil school in Ørsted; and
- an 800-pupil school in Vildbjerg.
Key features of the investments include:
- 100% availability-based revenue streams with public sector counterparties backed by the Danish State;
- Long-term stable cashflows with project length of up to 20 years;
- A track record of strong operational performance; and
- Essential infrastructure – the portfolio’s investments all provide critical infrastructure services to their respective communities.
After this deal, the fund’s debt facility will be approximately £160m drawn against its £250m limit, including £9m issued by way of a letter of credit to support the commitment to invest in the Flinders University Health and Medical Research Building upon construction completion in March 2025. [We may be close to another equity funding round for the fund.]
INPP : New Danish portfolio for International Public Partnerships