International Public Partnerships Limited (LON:INPP), the FTSE 250 listed infrastructure investment company, has today acquired an accretive additional interest in the Essex Building Schools for the Future (“BSF”) Project.
INPP will commit a further c.£6.8 million to acquire stakes in the two PFI project companies that own the Project’s four schools which typically provide education facilities to over 3,700 secondary school pupils across Essex, UK.
INPP acquired the additional interest in the Project from Skanska UK Pension Fund, RM plc, and the Essex County Council to increase the Company’s existing investment to 28 per cent on phase 1 and 100 per cent on phase 2.
Like the other BSF projects in which INPP invests, the additional investment meets INPP’s investment criteria given:
• The investment debt is non-recourse at the project level and matched to the life of the Project;
• The Project has a long operational life with the contracts on phase 1 and phase 2 due to expire on the 31 December 2036;
• The investment conforms to the typical UK BSF PFI project funding structure with a well-established and standard form risk framework;
• The Project is operational and yielding and will be accretive to INPP’s portfolio return immediately upon acquisition.
The Project includes Castle View School and Cornelius Vermuyden School and Arts College on Canvey Island; Columbus New Model Special School in Chelmsford, and Woodlands School in Basildon. At present all of the schools are open to children of key workers and project operations are being maintained in the usual way notwithstanding the COVID-19 pandemic.
Mike Gerrard, Chairman of International Public Partnerships, said: “Since 2011, INPP has invested over £200 million into the development and refurbishment of over 200 individual schools across the UK through the Building Schools for Future programme. These provide high-quality educational facilities for local authorities, teaching professionals and students.”
“Our commitment to providing long-term finance to the school sector demonstrates the attractiveness of the asset class that helps provide our investors with predictable, low-risk and long-term returns.”
“Despite the ongoing uncertainty and disruption caused by the Covid-19 pandemic, the Company maintains access to a pipeline of investment opportunities, which we continue to evaluate in parallel with our focus on maintaining the robust operation of our existing portfolio and on supporting the local communities which it serves.”
