International Public Partnership Ld INPP grows investment portfolio in United States (4499L)
03 October 2016 - 5:00PM
UK Regulatory
TIDMINPP
RNS Number : 4499L
International Public Partnership Ld
03 October 2016
3 October 2016
INPP grows investment portfolio in united states
International Public Partnerships Limited ('the Company' or
'INPP') is pleased to announce a further investment in the US
military housing sector. This additional investment marks the
continued growth of its investment portfolio in the United States
('US').
The Company has invested approximately US$32.0 million (GBP24.6
million) into further interest-bearing subordinated debt
instruments. The tranche of interests now being acquired are
secured on the same underlying military housing assets as those
purchased by the Company in October 2015 but rank higher in
priority to them.
The interests are underpinned by security over seven operational
PPP military housing projects. These encompass a total of 19
operational military bases in the US, with approximately 21,800
individual housing units. The debt has a 36-year tenor and matures
in 2052.
Military housing is the longest standing sector in the US for
public private partnership projects ("PPP" or in the US, "P3"). The
introduction of private sector capital and resources in the
provision of military housing was established by Congress in 1996
through the Military Housing Privatization Initiative ("MHPI") and
schemes have attracted capital in excess of US$30 billion from
domestic and international investors to date.
The opportunity meets INPP's investment criteria and the Company
expects the instruments to offer INPP an attractive rate of return
notwithstanding the weaker USD/GBP exchange rate. The investment
provides the Company with further exposure to one of the US
infrastructure market's most established sectors.
The military housing projects have the following
characteristics:
-- A secure revenue stream via the US military's Basic Allowance
for Housing paid to service personnel which creates an indirectly
government sourced revenue payment;
-- High barriers to entry as the number of on-base housing units is limited;
-- No residual value exposure;
-- A geographically diverse portfolio of housing units across
the continental US including some of the largest and most critical
US military installations.
The opportunity was sourced through the Company's investment
adviser, Amber Fund Management Limited's ("AFML") relationship with
Hunt Companies Inc. ("Hunt"). Hunt is one of the largest owners,
managers and providers of ongoing services in the P3 Military
Housing sector having interests in approximately 5200 units. Hunt
will asset manage and property manage the majority of the projects
that relate to this transaction.
The investment has been funded through a combination of the
Company's cash reserves and its corporate debt facility. The
Company has approximately GBP161.6 million of uncommitted credit
available under its GBP300 million revolving credit facility (after
taking into account its future investment obligations into new
projects including its investment commitments to the Thames Tideway
Tunnel project).
Rupert Dorey, Chairman of INPP, said: "Our second transaction in
the United States marks the measured diversification of our
portfolio into the P3 sector and further demonstrates the added
value that Amber's relationship with Hunt provides investors in
INPP. We look forward to building on this success by developing
additional primary pipeline opportunities in the United States over
the medium term."
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
Notes to Editors:
About International Public Partnerships:
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 122 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport, renewable energy and waste
water projects in the U.K., Europe, Australia and North America.
INPP seeks to provide its shareholders with both a long-term
government-backed yield and capital growth through investment
across both construction and operational phases of typically 20-40
year concessions.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
About Amber Infrastructure Group:
Amber Infrastructure (Amber) is a leading international
infrastructure specialist, providing asset management and
investment advisory services in respect of over GBP6.5 billion of
assets in the UK, Europe, Australia and North America. Amber's core
business focuses on sourcing, developing, advising on, investing in
and managing infrastructure assets within the utilities, PPP,
accommodation, transport, renewable energy and regeneration
sectors.
Amber provides investment advisory services to International
Public Partnerships
Limited as well as private investment funds, specialising in
urban regeneration. Amber is headquartered in London with offices
in Edinburgh, Munich, Sydney, Melbourne and San Francisco and
employs over 90 people, making it one of the largest international
infrastructure specialists.
This information is provided by RNS
The company news service from the London Stock Exchange
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