International Public Partnership Ld INPP Makes First Investment in the US (2061B)
05 Ottobre 2015 - 10:15AM
UK Regulatory
TIDMINPP
RNS Number : 2061B
International Public Partnership Ld
05 October 2015
5 October 2015
INPP makes first investment in the US
International Public Partnerships Limited ('the Company' or
'INPP') is pleased to announce its first investment in the US. The
Company has invested approximately US$48 million (GBP32 million)
into a series of fully yielding mezzanine debt instruments with a
remaining average life of 37 years.
The mezzanine debt is being acquired by the Company from the
Federal Home Loan Mortgage Corporation ("Freddie Mac") and is
underpinned by security over seven operational PPP military housing
projects relating to a total of 19 operational military bases in
the US comprising approximately 21,800 individual housing
units.
The military housing is the longest standing sector in the US
for public private partnership ("PPP" or in the US, "P3") projects.
The introduction of private sector capital and resources in the
provision of military housing was established by Congress in 1996
through the Military Housing Privatization Initiative ("MHPI") and
schemes have, to date, attracted capital in excess of US$30 billion
from domestic and international investors.
The opportunity meets INPP's investment criteria and the Company
expects the instruments to offer INPP a particularly attractive
rate of return as well as providing the Company with an entry into
the US infrastructure market in one of its most established
sectors.
The military housing projects have the following
characteristics:
-- a secure revenue stream via the US military's Basic Allowance
for Housing paid to service personnel creating an indirectly
government sourced revenue payment;
-- high barriers to entry as the number of on-base housing units is limited;
-- no residual value exposure;
-- a geographically diverse portfolio of housing units across
the continental US including some of the largest and most critical
of US military installations.
The acquisition opportunity was identified as a consequence of
the Hunt Companies Inc's shareholding in the Company's investment
adviser, Amber Fund Management Limited ("AFML") and the
relationship that exists between Hunt and the Company with respect
to US opportunities. Hunt are one of the largest owners, managers
and providers of ongoing services in the P3 Military Housing sector
having interests in approximately 33,000 housing units including
those the subject of this transaction where they also provide
property management services in respect of most of the units. This
Company has acquired these assets directly from Freddie Mac.
The investment has been funded through a combination of the
Company's cash reserves and its corporate debt facility. Given the
Company's corporate debt facility is largely committed the Board is
continuing to consider fundraising options.
Commenting on the acquisition Chairman of INPP Rupert Dorey
said: "We are pleased to have made our first investment in the US.
Military Housing schemes have an established track record in the US
and we believe that this opportunity not only provides an
attractive return for our shareholders but potentially opens the
door to further attractive opportunities in one of the world's
largest infrastructure markets."
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
Notes to Editors:
About International Public Partnerships:
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 119 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport, renewable energy and waste
water projects in the U.K., Europe, Australia and North America.
INPP seeks to provide its shareholders with both a long-term
government-backed yield and capital growth through investment
across both construction and operational phases of typically 20-40
year concessions.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
About Amber Infrastructure Group:
Amber Infrastructure (Amber) is a leading international
infrastructure specialist, providing asset management and
investment advisory services in respect of over GBP5 billion of
assets in the UK, Europe, Australia and North America. Amber's core
business focuses on sourcing, developing, advising on, investing in
and managing infrastructure assets within the utilities, PPP,
accommodation, transport, renewable energy and regeneration
sectors.
Amber provides investment advisory services to International
Public Partnerships
Limited as well as private investment funds, specialising in
urban regeneration. Amber is headquartered in London with offices
in Edinburgh, Munich, Sydney, Melbourne and San Francisco and
employs over 80 people, making it one of the largest international
infrastructure specialists.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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