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BBGI Global Infrastructure buys German motorway

BBGI Global Infrastructure buys German motorway – BBGI Global Infrastructure (BBGI) has entered into an agreement to acquire a 49% equity interest in Via Solutions Nord, a limited partnership incorporated in Germany, being the project company for the A7 motorway public-private partnership between Bordesholm and Hamburg in Germany. BBGI says the investment offers an inflation linkage in line with the  portfolio.

The project includes expansions and upgrades to certain critical sections of the A7 motorway and consists of the design, construction, financing, operation, maintenance and rehabilitation of 65 km widening from four to six lanes of a section of the A7 motorway between Bordesholm and Hamburg. There are 11 interchanges, six parking facilities, four rest areas, 79 civil engineering structures, c. 100,000 m2 noise barriers and a c. 550-metre noise enclosure tunnel. Availability payments are received from the Federal Republic of Germany, represented by DEGES (Deutsche Einheit Fernstraßenplanungs- und -bau GmbH). Construction completion was in December 2019 and the concession runs until 2044.

The project’s increased efficiency of the A7 will help to minimise any increase in exhaust emissions from the higher traffic load by reducing congestion and traffic jams and is expected to achieve a consistent traffic flow and uniform driving speeds. A fauna, flora and habitats compatibility study was undertaken and concluded that the project will not have significant negative effect on protected sites or species. The project also contributes to the trans-European networks’ objectives to improve cross-border connections.

The purchase price is confidential, but the investment is expected to rank in the company’s top six to ten investments while consideration for the acquisition of the 49% interest is being funded by BBGI’s drawing upon its £230m corporate revolving credit facility and existing cash resources.

Frank Schramm, Co-CEO of BBGI, said: “Our 56th availability-based infrastructure investment is our first road project in Germany and a great addition to our existing six projects in the country, further strengthening our Continental Europe exposure.”

BBGI : BBGI Global Infrastructure buys German motorway

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