International PPL restructures Building Schools for the Future portfolio

3rd Feb 2014 09:02

International Public Partnerships (INPP) has made a number of acquisitions and disposals within its Building Schools for the Future (BSF) portfolio. The UK investment company will buy a 60% interest in the Kent BSF education project from Kier Project Investments. INPP will invest £7.2m and will own 58% of the project, which includes building three secondary schools in Kent.Kent County Council will own the remaining 42% on completion of the transaction.At the same time, INPP will divest minority interests in the Hull, Leeds, Newcastle, Rochdale and Sandwell BSF projects to the Dalmore Capital Fund. The group will also sell its minority interest in the Leicester BSF project to Semperian Investments.INPP said it determined that it had "no realistic scope to increase its holdings in these particular projects to majority controlling holdings and therefore considered, based on the price offered, a sale would be in the best interests for the company". Proceeds of sale will be about £18.75m, well above the price paid on acquisition in August 2011, and offers a significant premium to the 8-9% internal rate of return target of the company. The proceeds will be used for investment in current infrastructure projects.Chairman Rupert Dorey said: "The divestment of these minority BSF interests highlights the company's willingness to optimise its portfolio for investors in situations where opportunities to increase the company's minority position are not available and attractive prices can be achieved."RD