DIF Capital Partners is selling its 10.66% stake in the Thames Tideway Tunnel project in London to the project’s existing co-shareholders for an undisclosed sum.
DIF, through the DIF Infrastructure III (DIF III) and DIF Infrastructure IV funds, acquired the stake in the £4.2bn infrastructure project in 2015, alongside Allianz Capital Partners, Dalmore Capital and two Amber Infrastructure-related entities International Public Partnerships (INPP) and Swiss Life Asset Managers.
DIF said the transaction has arisen due to DIF III coming to the end of its fund life.
INPP, which has agreed to acquire part of DIF’s stake, the acquisition would result in INPP increasing its stake in Tideway to approximately 18% and deploying approximately £40m of additional capital.
Mike Gerrard, chair of International Public Partnerships, said: “We welcome the opportunity to increase our position in this crucial environmental asset. It is timely that the company is making a further investment into Tideway as it reaches the conclusion of underground excavation works.”
Andrew Freeman, the head of exits at DIF Capital Partners, said: “During our joint ownership, the co-shareholders have championed our collective vision of providing long-term benefits to London by upgrading its essential infrastructure. We are delighted to leave Tideway under their stewardship.”
Tideway is a 25km long tunnel being constructed to help prevent the release of untreated sewage that is currently discharged into the River Thames.
At the end of April this year, Tideway reached a significant milestone with the completion of tunnelling.
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