Additional Investment in Diabolo
24 September 2013
INPP acquires additional interest in Northern Diabolo Project
- Additional €33.3million to be invested in remaining 25% of Project -
International Public Partnerships Limited (INPP), the FTSE 250 listed infrastructure investment company, is pleased to announce that it has, through a subsidiary, acquired the remaining 25% economic interest in the Northern Diabolo Project (the Project) not already owned by it from a subsidiary of HSH Nordbank.
The opportunity to make the additional investment has arisen through the pre-emptive rights that were obtained when the Company's existing economic 75% interest was acquired in 2007. The additional 25% stake was acquired for €33.3 million (£28.1 million) and is expected to be accretive to the portfolio. Following acquisition INPP will own 100% of the economic interest in the Project and the proportion of its total assets in respect of which INPP owns 100% will increase to 70.6% on a value basis.
The Northern Diabolo Project is a Belgium-based project that provides improved rail access to Brussels airport. The Project involved building and financing a rail link over a five year construction period and thereafter maintaining if over a concession period of 35 years.
The construction programme, which was overseen by the Company' Investment Advisor, Amber Infrastructure, and was successfully completed on time and to budget on 25 February 2012, saw a new tunnelled rail connection under Brussels airport runway, linking the airport to the new Brussels-Antwerp High Speed rail line.
The new investment meets INPP's key investment criteria and has a number of attractive features including:
· Provides immediate yield to investors
· High level of familiarity with the Project given the Company's existing investment and that the Investment Advisor has been involved from Project's inception
· Long duration asset with c. 34 years remaining on the scheduled life of the concession
· Project revenues which are linked to future inflation
· Limited construction risk given that the Project entered into operational phase in 2012 and the transition to full operations continues successfully
· The transport exposure in INPP's portfolio is increased from 21% at 30 June 2103 to 24% (on a pro forma basis). The revenues receivable by INPP from the Diabolo project are based on an indexed fixed fee basis and with part of the revenues being dependent on passenger throughput but with protective downside mechanisms.
The acquisition will befunded through INPP's existing cash resources.
Keith Dorrian, Chairman of International Public Partnerships, said: "INPP is delighted to have acquired the remaining interest in the Diabolo Project. The opportunity is evidence of the value of the pre-emption rights that exist within the INPP portfolio and the benefit in developing 'home-grown' opportunities.
Given the increasing level of interest for assets in the secondary market we are pleased to be able to deliver accretive assets into the portfolio outside competitive auction-based processes."
For further information:
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International Public Partnerships Limited Erica Sibree |
+44 (0)20 7939 0558 |
|
Numis Securities Hugh Jonathan/Nick Westlake
FTI Consulting Ed Berry/Harry Stein
|
+44(0)20 7260 1263/1345
+44 (0)20 7269 7297/7141
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Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP), private finance initiative (PFI), regulated asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 122 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.
Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of around 70 dedicated staff who manage, advise on and originate projects for INPP.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
This information is provided by RNS
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