Acquisition

Babcock&Brown Public Ptnrships Ltd
15 August 2007




            Babcock & Brown Public Partnerships acquires BeNEX stake

Following a meeting of the Supervisory Board of Hamburger Hochbahn AG (Hochbahn
AG), Babcock & Brown Public Partnerships Limited (LSE: BBPP or the 'Company')
was today announced as the successful bidder of a 49% stake in the newly
established Hochbahn AG subsidiary named BeNEX. Hochbahn AG is the second
largest Local Public Passenger Transportation (LPPT) company in Germany and is
100% owned by the federal state City of Hamburg.

Hochbahn AG has placed all its existing expansion activities in the Local Public
Passenger Transportation (LPPT) sector outside the metropolitan region of
Hamburg into BeNEX. BeNEX has shares in four rail transportation companies
(cantus, metronom, NBE nordbahn, and ODEG) and in four bus transportation
companies (FBG Fulda, KVG Kieler Verkehrsgesellschaft, Stadtverkehr Lubeck, and
WiBus Wiesbadener Busgesellschaft).

The investment was sourced by the Company's investment adviser, Babcock & Brown
Investment Management Limited, a subsidiary of the Babcock & Brown Group, whose
worldwide network of 29 offices staffed by more than 1000 staff (including more
that 300 dedicated infrastructure specialists), offers substantial resource in
the origination and execution of investment opportunities for the Company.

Giles Frost, Director of BBPP, said 'This is a very exciting acquisition for the
Company. The transaction represents BBPP's first acquisition in the German
market and would combine Hamburger Hochbahn's experience and strong track record
in the German LPPT market and BBPP's experience in the development and financing
of public private partnerships, creating a powerful partnership in a market
which is likely to see an increasing number of PPP-style transport
infrastructure initiatives. BBPP, through BeNEX, plans to actively participate
in future local bus and rail tenders and will also examine the potential
acquisition of existing LPPT businesses across Germany.

'This transaction is immediately yield accretive for BBPP investors and
distributions over the first four years of our investment are fixed at an
attractive pre-agreed level. BBPP will finance the acquisition from funds
available for investment, but still retains sufficient cash to fund further
opportunities. The Board remains confident that we will be fully invested by the
year end.

'We remain focused on delivering shareholder value by pursuing international
public infrastructure opportunities that offer stable long-term cash flows and
attractive returns relative to their risk profile', said Giles Frost.

The acquisition has yet to reach financial close and is subject to agreement by
the relevant regulatory and competition authorities, at which time further
financial details will be disclosed to BBPP investors.

For further information, please contact:

Babcock & Brown: [phone]

Investors     Bianca Francis
Media         Anthony Kennaway

Notes to Editors

About Babcock & Brown Public Partnerships Limited:

Babcock & Brown Public Partnerships Limited is a limited liability, Guernsey
incorporated, closed-ended investment company. The Company offers shareholders
an exposure to investment in infrastructure assets, particularly those with a
public or social character such as those developed under public bodies under
private finance initiative or public private partnership procurements.

The Company floated on the main market of the London Stock Exchange on 9th
November 2006 and on 14 August 2007 had a market capitalisation of £323.3m
million. The portfolio now comprises 25 projects - 13 developed under the UK PFI
Private Finance Initiative; 6 under the UK NHS Local Improvement Finance Trust
procurement, 4 Australian PPP projects, a Canadian P3 contract and this German
PPP. There is diversification geographically as well as across several PPP/PFI
sectors, including roads and tunnels, railways, schools, courthouses, police and
custodial facilities, government offices and health facilities. Babcock & Brown
has been responsible for the development and management of the majority of these
assets and through Babcock & Brown Investment Management Limited (BBIML) will
continue to manage them for the benefit of BBPP.

In the future BBPP intends to capitalise on the development and
internationalisation of private finance initiative (PFI) and public private
partnerships (PPP) procurement models for public infrastructure in other
developed countries, which it is anticipated will provide numerous investment
opportunities for BBPP.




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