INPP grows investment portfolio in United States
INPP GROWS INVESTMENT PORTFOLIO IN UNITED STATES
5 December 2022
International Public Partnerships Limited , the listed infrastructure investment company (' INPP ' or the ' Company '), has announced a follow-on investment in Family Housing for Service Personnel ('FHSP'), one of the longest-standing social infrastructure sectors in United States ('US') Public-Private Partnerships ('PPP'), or P3.
The Company has invested approximately US$45 million (c.£37 million) into two additional interest-bearing subordinated debt instruments underpinned by security over seven operational P3 FHSP projects, comprising c.21,800 housing units located across the US.
The additional investment marks the continued growth of the Company's investment portfolio in the US, with approximately 4 per cent of the portfolio by investment fair value invested in the US. The introduction of private sector capital and resources to provide housing for service personnel was established by US Congress in 1996 and has attracted capital in excess of US$30 billion from domestic and international institutional investors to date.
The investment meets the environmental and social characteristics under Article 8 of the EU Sustainable Finance Disclosure Regulation ('SFDR') designation.
The FHSP projects have the following characteristics:
· A secure revenue stream to 2052 by way of the direct assignment of the Basic Allowance for Housing for the service personnel who live on the bases, which is paid by the US government;
· High barriers to entry as the number of on- facility housing units is limited;
· Positive social credentials through provision of family housing;
· No residual value exposure; and
· A geographically diverse portfolio of housing units across the US.
The investment was sourced by the Company's investment adviser, Amber Fund Management Limited ('Amber') and was acquired from Amber's affiliate, Hunt Companies Inc. ('Hunt'). Hunt is one of the largest owners, managers and providers of ongoing services in the sector, with interests in approximately 51,800 units in the US. The Hunt group will asset manage and property manage the projects that relate to this transaction.
In accordance with the Company's procedures for related-party transactions, the Company sought an independent valuation. In addition, this transaction is deemed a smaller related party transaction within Listing Rule 11.1.10R and therefore the Company obtained a fair and reasonable opinion in relation to the transaction.
As at 2 December 2022, the Company's £250 million revolving credit facility was undrawn, with c.£17 million committed via letters of credit for near-term pipeline investments.
Mike Gerrard, Chair of INPP, said: "The Company is well positioned to originate new investment opportunities in North America, given the strength of its Investment Adviser's local presence. With an additional investment into family housing, the Company is increasing its portfolio allocation to the US. Since our first investment into the US Family Housing for Service Personnel sector in 2015, our investments have performed strongly and we are confident of their continued long-term resilience".
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 responsibly 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 growing dividends and the potential for capital appreciation.
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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