LONDON, UK: International Public Partnerships Limited (INPP) has agreed binding phrases to acquire 5 infrastructure investments in New Zealand for c. NZD 200 million from Morrison & Co managed Public Infrastructure Partners.
The acquisition marks the Company’s first funding in New Zealand and can present additional diversification of INPP’s funding portfolio in addition to a platform which ought to generate additional funding alternatives into the country.
The portfolio comprises the next 5 projects, the place the Company will have 100% ownership:
- Three schools projects, representing an funding in eleven schools throughout the breadth of New Zealand, all of which were procured via public-private-partnership (‘PPP’) concessions with the NZ Ministry of Education;
- The Auckland Prison, the place the project firm solely has responsibility for the provision and upkeep of bodily assets with the custodial services provided independently by the New Zealand Department of Corrections. This was procured under a PPP and
- A purpose-built student accommodation facility on the Auckland University of Technology (‘AUT’) underpinned by a service settlement with AUT guaranteeing 96% of rental occupancy and benefitting from excessive historic occupancy ranges (even throughout Covid-19).
These high-quality infrastructure investments are already operational, delivering long-term stable money flows linked to inflation. The return profile is considerably based upon authorities backed income streams generated through standard PPP contracts in one other extremely rated, stable OECD geography for INPP. The common remaining funding lifetime of the 5 projects is over 24 years.
In rising the Company’s contribution to important infrastructure, the investments meet the Company’s environmental and social commitments, under Article eight of the EU Sustainable Finance Disclosure Regulation (‘SFDR’) designation.
The portfolio acquisition is topic to regulatory approval, together with New Zealand’s Overseas Investment Office (‘OIO’), financier and counterparty consents after which time monetary shut is anticipated to happen in Q2 2023.
As at eight December 2022, the Company’s £250 million revolving credit score facility was £29.3 million drawn, with c.£17 million dedicated via letters of credit score for near-term pipeline investments.
Mike Gerrard, Chair of INPP, said: “We have entered the New Zealand market with a portfolio of high-quality assets primarily inside the education sector. This funding builds on our education sector experience and includes six large secondary schools and 5 primary schools located throughout the country. We’ll even be offering housing for round 200 college students at AUT’s North Shore Auckland campus.
“The 5 new investments additional improve INPP’s rising Australasian presence, which will represent roughly 11% by funding fair value, of our worldwide portfolio and provides us with a strong platform for growth. New Zealand is a mature infrastructure market, complementing our confirmed track record over the previous decade in Australia.”