PARTIAL DISPOSAL OF
FHSP
c.£30 million of proceeds
raised from a partial disposal of its Family Housing for Service
Personnel ('FHSP') investment
27
September 2024
International Public Partnerships
Limited, the listed infrastructure investment company ('INPP' or
the 'Company'), is pleased to announce a partial disposal of its
FHSP investment, realising c.£30 million, with the sale price being
in line with the Company's 30 June 2024 valuation[i].
INPP's FHSP investments are in the
form of mezzanine debt investments secured against seven
operational Public-Private Partnerships ('P3') projects, comprising
c.21,800 housing units located across the United States.
The disposal has been made in
accordance with the Company's stated capital allocation strategy
which includes maintaining a targeted programme of divestments. The
FHSP investments realised were identified as a disposal target by
the Company as part of its ongoing assessment of its portfolio. The
transaction will allow the proceeds to be reallocated towards its
existing share buyback programme as well as its near-term
investment commitments.
The FHSP investments that the
Company continues to hold were valued at c.£73 million as at 30
June 2024.
In addition, the disposal supports
the Board of Directors' confidence in the Company's portfolio
valuation and belief that optimising the portfolio and reallocating
capital should have a positive impact on the discount at which the
Company's shares are trading relative to their net asset value
('NAV').
Mike Gerrard, Chair of INPP, said: "We are pleased to report that the Company has successfully
realised a further c.£30 million from divestment activity. This
takes realised proceeds over the last 18 months to over £260
million representing c.10% of the portfolio (by investment at fair
value) across digital infrastructure, social infrastructure and
energy transmission sectors in the UK and North America. All
realisation activity has been in line with, or slightly above, the
most recently published valuations".
Approach to capital allocation and discount
management
The Company restates that it will
continue to maintain a disciplined approach to capital allocation,
guided by the following three principles, to ensure the Company is
as well positioned as possible in the current market:
1. Prudent use of the Company's corporate
debt facility ('CDF');
2. Maintain a targeted programme of
divestments to both demonstrate value and reallocate capital;
and
3. Allocate divestment proceeds towards
both, (i) increasing the share buyback programme, and (ii) subject
to the economics being more attractive over the medium to long-term
relative to the opportunity to engage in a share buyback, making
new, accretive investments.
There are currently no cash drawings
under the Company's £250 million CDF. The Company's existing share
buyback programme and its near-term investment commitments are
expected to be funded using a combination of existing cash reserves
as well as through additional cash expected to be generated in the
near-term.
Share buyback programme
To date, c.£22.5 million has been
used to buy the Company's shares under the buyback programme, which
has recently been extended to up to £60 million in size and is
currently expected to run until 31 March 2025. Shares will continue
to be bought under the programme whilst they trade at a significant
discount to their NAV.
Investment commitments
The Company has investment
commitments totalling c.£35 million across the transport (Gold
Coast Light Rail - Stage 3 and the recently announced further
investment in BeNEX), education (Flinders University Health and
Medical Research Building) and digital (toob) sectors. It is
currently expected that the majority of these amounts will be
invested over the period to 31 December 2025.
ENDS.
For further information:
Erica Sibree/Amy
Edwards
+44 (0) 7557 676
499 / (0) 7827 238 355
Amber Fund Management
Limited
Hugh Jonathan
+44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch
Barltrop
+44 (0) 7703 330 199 / (0) 7807 296 032
FTI Consulting
About International Public Partnerships:
INPP is a listed infrastructure
investment company that invests in global public infrastructure
projects and businesses, which meets societal and environmental
needs, both now, and into the future.
INPP is a responsible, long-term
investor in over 140 infrastructure projects and businesses. The
portfolio consists of utility and transmission, transport,
education, health, justice and digital infrastructure projects and
businesses, in the UK, Europe, Australia and North America. INPP
seeks to provide its shareholders with both a long-term yield and
capital growth.
Amber Infrastructure Group ('Amber')
is the Investment Adviser to INPP and consists of over 180 staff
who are responsible for the management of, advice on and
origination of infrastructure investments.