Durham Courthouse, Canada
Babcock&Brown Public Ptnrships Ltd
02 March 2007
Babcock & Brown Public Partnerships acquires Durham Courthouse contract in
Toronto, Canada
Babcock & Brown Public Partnerships Limited (LSE: BBPP) ('BBPP' or the
'Company'), the internationally focused public infrastructure fund, today
announced the acquisition of 100% of the equity in Access Durham Justice, the
company developing the Durham Courthouse project in the City of Oshawa, Ontario.
The development value of the courthouse is some CAN$262.4m (£115m).
The contract is a Canadian 'P3' (Public Private Partnership) project
commissioned by the Province of Ontario through the Ontario Infrastructure
Project Corporation (OIPC) to design and build and then operate and maintain a
33 courtroom public courthouse for a period of 30 years. It is anticipated that
the construction phase will take 34 months after which the 30 year contract will
commence. The building will be returned to the OIPC at the end of this period.
BBPP is committing to invest approximately CAN$15m (£6.6m) and is investing at
par value in the transaction. Construction will be undertaken for Access Justice
Durham by leading Canadian contractor PCL with facilities management by Johnson
Controls.
Giles Frost, Director of BBPP, said, 'This is another exciting acquisition for
the Company. It is the Company's first acquisition of a PPP investment in North
America and illustrates our ability to access attractive transactions around the
world. Most developed countries now have PPP programmes and we believe we have
unrivalled access to the opportunities these programmes bring. It is
particularly noteworthy that again the Company has secured the opportunity to
invest in this project at par value at financial close. The Company continues to
pursue a policy of seeking investments in projects both at their commencement
and through the acquisition of more mature project investments from others.'
'The investment was sourced by the Company's investment adviser, Babcock & Brown
Investment Management Limited (BBIML), a subsidiary of the Babcock & Brown
group, whose worldwide network of 26 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. '
'We remain focused on delivering shareholder value by pursuing international
public infrastructure opportunities that offer stable long-term cashflows and
attractive returns relative to their risk profile.'
For further information, please contact:
Babcock & Brown Anthony Kennaway +44 (0)20 7203 7300
Notes to Editors
About Babcock & Brown Public Partnerships Limited:
Babcock & Brown Public Partnerships Limited (LSE: BBPP) 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 23 February 2007 had a market capitalisation of £309
million. The portfolio comprises 24 projects - 13 developed under the UK PFI
Private Finance Initiative; 6 under the UK NHS Local Improvement Finance Trust
procurement, 4 Australian PPP projects and this new Canadian PPP contract. There
is diversification 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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