Infracapital, the infrastructure arm of M&G Investments, is taking an 80% stake in a €700m Italian public-private partnership (PPP) portfolio.
Societa’ Italiana Per Condotte d’Acqua, Italy’s third-largest construction company, sold the stake.
The portfolio includes operational and greenfield assets in the health, transport and security sectors.
Andy Matthews, greenfield director at Infracapital, said the deal provided Infracapital with a high-quality platform of PPP projects in Italy.
“The deal is indicative of the significant greenfield infrastructure investment opportunity in Italy and across Europe, where we hope to invest further in the coming years,” he added.
The portfolio includes Italy’s first PPP prison scheme, due to start construction this year.
The Citta’ della Salute hospital project in Milan, as well as Vimercate hospital in the north of the city, are also included in the portfolio.
Isabella Bruno Tolomei Frigerio, president and CFO at Ferfina, the holding company of Condotte, said: “We see significant growth potential in healthcare, transport and accommodation PPP throughout Italy.”