Dutch civil service scheme ABP has added a portfolio of nine UK school public-private partnership (PPP) projects to its European social infrastructure portfolio managed by InfraRed Capital Partners.
UK-listed International Public Partnerships (INPP) has sold the nine projects to the separately managed account (SMA) managed by InfraRed on behalf of pensions asset manager APG for more than £58m (€67.7m), a price the seller said represented a premium to the assets’ last published valuation in December last year.
The nine PPP projects comprise 15 schools serving students through secondary, special educational needs and further education facilities across the London boroughs of Ealing, Islington, Southwark and Lewisham.
The assets were originally delivered as part of the UK government’s Building Schools for the Future programme launched in 2004.
INPP said the disposal forms part of its capital recycling programme to realise proceeds from mature assets and provide additional flexibility to fund higher-returning investment opportunities and share buybacks. Following this transaction, INPP will have realised over £440m over the past three years.
Sarah Whitney, chair of INPP, said: “The disposal of the PPP projects at a premium provides further validation of INPP’s high-quality assets and the inherent value embedded in the existing portfolio. The proceeds, coupled with internal cash flows, are being reinvested in highly attractive assets and therefore accretive to overall returns.”
Sean Watson, partner at InfraRed, said: “This acquisition reflects our shared conviction in the long-term value of essential social infrastructure assets and InfraRed’s ability to source and actively manage investments in sectors that require specialist expertise.
“The portfolio consists of well-established education facilities that play an important role in their local communities, providing critical services and supporting positive social outcomes.”
In August last year, InfraRed won a 22-year mandate to manage European social infrastructure assets on behalf of APG. The newly formed SMA was seeded with a £225m portfolio of core UK assets acquired from HICL Infrastructure.
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