BAM PGGM and OFI InfraVia buy majority stake in A8 highway in Germany
Related M&A Transactions
BAM PPP PGGM Infrastructure Coöperatie (the joint venture between BAM PPP and the Dutch pension fund service provider PGGM) and OFI InfraVia yesterday announced their acquisition of 50% and 25% respectively ofthe economic interests in the concession rights associated with the A8 A-model project from BAM PPP (25%), Fluor Infrastructure (25%) and VolkerWessels Deutschland (25%). The final 25% remains held by Egis Investment Partners (19%) and Berger Bau (6%).
The 30 year project which was the first of the A-Model projects in Germany to reach financial close in 2007 reached completion of the widening to six-lanes in 2010, and involves the operation and maintenance of the section of the A8 Federal motorway between Augsburg and Munich. The concession revenues are based on the number of HGV using the motorway section, and the corresponding toll revenues collected by Toll Collect GmbH, the operator of HGV distance-based toll system applicable on German federal motorways.
The motorway is operated by a special purpose company autobahnplus Services GmbH under the leadership of Egis Road Operation (56%) together with Wayss & Freytag (16%), VolkerWessels Deutschland (16%) and Berger Bau (12%).
Both the BAM PGGM JV and OFI InfraVia are long-term infrastructure investors who are committed to maintaining the high quality, reliability and safety of the A8. The day-to-day management and operationalteams forthe project willremain in place.
For the BAM PGGM JV this transaction continues the Royal BAM strategy of structured divestment to realise some of the underlying value in its portfolio of PPP projects while providing PGGM with access to immediately yielding assets and long-term inflation-linked returns both of which are attractive features forits clients.
"The A8 is an excellent transportation infrastructure asset with an established operating history, a strong concession framework and an attractive long-term profile, which aligns perfectly with our investment strategy in mid-size, brownfield, real infrastructure assets," said Vincent Levita, Founder and CEO of OFI InfraVia. "We look forward to partnering with the Autobahndirektion Südbayern, existing subcontractors and local communities to ensure the continuing success ofthis project".
Source: OFI Infravia