Acquisition of First New Zealand Investments
ACQUISITION OF FIRST new zealand investments
9 December 2022
International Public Partnerships Limited ('INPP' or 'the Company'), the FTSE 250 listed infrastructure investment company, has agreed binding terms to acquire five infrastructure investments in New Zealand for c. NZD 200 million (the 'Acquisition') from Morrison & Co managed Public Infrastructure Partners.
The Acquisition marks the Company's first investment in New Zealand and will provide further diversification of INPP's investment portfolio as well as a platform which should generate further investment opportunities into the country.
The portfolio comprises the following five projects, where the Company will have 100% ownership:
· three schools projects, representing an investment in 11 schools across the breadth of New Zealand, all of which were procured via public-private-partnership ('PPP') concessions with the NZ Ministry of Education;
· the Auckland Prison, where the project company only has responsibility for the provision and maintenance of physical assets with the custodial services provided independently by the New Zealand Department of Corrections. This was procured under a PPP and
· a purpose-built student accommodation facility at the Auckland University of Technology ('AUT') underpinned by a service agreement with AUT guaranteeing 96% of rental occupancy and benefitting from high historic occupancy levels (even during Covid-19).
These high-quality infrastructure investments are already operational, delivering long-term stable cash flows linked to inflation. The return profile is significantly based upon government backed revenue streams generated through standard PPP contracts in another highly rated, stable OECD geography for INPP. The average remaining investment life of the five projects is over 24 years.
In growing the Company's contribution to essential infrastructure, the investments meet the Company's environmental and social commitments, under Article 8 of the EU Sustainable Finance Disclosure Regulation ('SFDR') designation.
The portfolio acquisition is subject to regulatory approval, including New Zealand's Overseas Investment Office ('OIO'), financier and counterparty consents after which time financial close is expected to occur in Q2 2023.
As at 8 December 2022, the Company's £250 million revolving credit facility was £29.3 million drawn, with c.£17 million committed via letters of credit for near-term pipeline investments.
Mike Gerrard, Chair of INPP, said: "We have entered the New Zealand market with a portfolio of high-quality assets primarily within the education sector. This investment builds on our education sector expertise and includes six large secondary schools and five primary schools located across the country. We'll also be providing housing for around 200 students at AUT's North Shore Auckland campus.
"The five new investments further enhance INPP's growing Australasian presence, which will represent approximately 11[1]% by investment fair value, of our international portfolio and provides us with a strong platform for growth. New Zealand is a mature infrastructure market, complementing our proven track record over the past decade in Australia."
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 170 staff who are responsible for the management of, advice on and origination of infrastructure investments.
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