LONDON, UK: International Public Partnerships Limited (INPP), the listed infrastructure funding company, has introduced a follow-on funding in Family Housing for Service Personnel (FHSP), one of many longest-standing social infrastructure sectors in United States Public-Private Partnerships (‘PPP’), or P3.
International Public Partnerships Limited has invested roughly US$45 million (c.£37 million) into two additional interest-bearing subordinated debt devices underpinned by safety over seven operational P3 FHSP projects, comprising c.21,800 housing units located throughout the US.
The additional funding marks the continued growth of the Company’s funding portfolio within the US, with roughly four per cent of the portfolio by funding fair worth invested within the US. The introduction of personal sector capital and resources to present housing for service personnel was established by US Congress in 1996 and has attracted capital in extra of US$30 billion from home and worldwide institutional investors to date.
The investment meets the environmental and social traits under Article eight of the EU Sustainable Finance Disclosure Regulation (‘SFDR’) designation.
The FHSP projects have the next characteristics:
- A safe income 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 because the variety of on-facility housing units is limited;
- Positive social credentials through provision of household housing;
- No residual worth exposure; and
- A geographically diverse portfolio of housing units throughout the US.
The funding was sourced by the Company’s funding adviser, Amber Fund Management Limited (‘Amber’) and was acquired from Amber’s affiliate, Hunt Companies Inc. (‘Hunt’). Hunt is one of many largest owners, managers and suppliers of ongoing services within the sector, with pursuits in roughly 51,800 units within the US. The Hunt group will asset handle and property handle the projects that relate to this transaction.
As at 2 December 2022, the Company’s £250 million revolving credit score facility was undrawn, with c.£17 million dedicated via letters of credit score for near-term pipeline investments.
Mike Gerrard, Chair of INPP, said: “The Company is well positioned to originate new funding alternatives in North America, given the strength of its Investment Adviser’s native presence. With an additional funding into household housing, the Company is increasing its portfolio allocation to the US. Since our first funding into the US Family Housing for Service Personnel sector in 2015, our investments have carried out strongly and we’re assured of their continued long-term resilience”.