Further Investment into Gold Coast Light Rail
FURTHER INVESTMENT INTO GOLD COAST LIGHT RAIL
31 March 2022
International Public Partnerships Limited ('INPP' or 'the Company'), the FTSE 250 listed infrastructure investment company, is pleased to announce that it has reached financial close on Stage 3 of the Gold Coast Light Rail project (the 'Project').
The follow-on investment in the Project has arisen through the Company's existing 30% interest in the Project.
The Project extends the existing Gold Coast Light Rail network (known as G:link) a further 6.7 kilometres south from Broadbeach to Burleigh Heads. It will include eight new stations, five additional light rail trams, new bus and light rail connections at Burleigh and Miami, and an upgrade of existing depot and stabling facilities.
At completion of Stage 3 in 2025, Queensland's only light rail system will have a route 27 kilometres long from Helensvale to Burleigh Heads, stopping at 27 stations and serviced by 23 trams.
Stage 1 and 2 of the Gold Coast G:link light rail system has become a resounding success with more than 60 million passenger trips to date. One of the many benefits of the rail system has been an overall increase in public transport use on the Gold Coast with a 43 percent uplift for combined tram and bus use since light rail opened in 2014. The Company will look to support the delivery of the project in line with its Sustainability Policy Aims, with a particular focus on reducing embodied carbon as far as practical.
Gold Coast Light Rail is a public-private-partnership ('PPP') between the Queensland Government and GoldlinQ - a consortium of which INPP is a member. The consortium has successfully designed, constructed, financed, operated, and maintained the project since 2011. In addition to private financing, the project received funding from the Federal and Queensland Governments and the City of Gold Coast.
Under the terms of the acquisition the Company will make an investment totalling approximately A$13.5 million. (c.£7.7 million at current exchange rates). The return profile of the investment is expected to be consistent with the returns being generated by the Company on its existing investment in the Project. Following financial close of the acquisition the Company will be approximately £173.1 million drawn against its £250 million corporate debt facility including £16.9 million drawn under letter of credit.
Mike Gerrard, Chair of INPP, said: "INPP's now ten year investment in Gold Coast Light Rail reflects its continued contribution to developing sustainable, reliable modes of transport in one of Australia's fastest-growing areas. It is also an example of the importance of public-private sector collaboration in delivering outcomes for society. Reaching financial close on the third stage of its development reflects our long-term commitment to the Project, and our confidence in its ability to continue transforming the way people move around the city in line with sustainable goals."
ENDS.
For further information:
Erica Sibree/Amy Edwards +44 (0) 7557 646 499 / (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 150 staff who are responsible for the management of, advice on and origination of infrastructure investments.
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