3i Infrastructure plc announces investment in La Sante PPP project

14th Nov 2014 10:08

3i Infrastructure plc has committed to invest €11.7m to acquire an 80% holding in the La Santé Prison project in Paris. The Public Private Partnership (PPP) includes the design, build, refurbishment, finance and maintenance of various building for La Santé, the Paris prison. Once construction is complete, expected towards the end of 2018, the project will also include the provision of facilities management services.The Project was procured under a typical PPP framework by the Agence Publique pour l'immobilier de la Justice (APIJ), part of the Ministry of Justice. The project will be carried out as part of the wider government initiative to modernise French prisons. Remaining equity will be held by subsidiaries of Vinci Construction France and GDF-Suez.As part of the purchase agreement, BAM GP, the company originally qualified to participate in the project, has transferred its 80% shareholding to 3i Infrastructure for €32, 000. Furthermore, 3i Infrastructure has committed a €11.65m letter of credit issued by lenders under the Company's revolving credit facility, in favour of the lenders to the Project.The arrangements between BAM GP and 3i Infrastructure pursuant to the Purchase Agreement and the financial support provided by 3i Infrastructure constitute a smaller related party transaction under Listing Rule 11.1.10 R.Peter Sedgwick, Chairman of 3i Infrastructure plc, commented: "The Board is pleased with the investment in La Santé, which represents a further step in building the Company's exposure to primary PPP projects, alongside its focus on investing in Core infrastructure."Ben Loomes and Phil White, Managing Partners and Co-heads, Infrastructure, 3i Investments plc, added: "We are pleased to reach financial close of the La Santé primary PPP project. We are seeing a healthy pipeline of investment opportunities in European primary PPP projects."