Bilfinger Berger Global Infrastructure SICAV S.A. (BBGI) has entered into a share and unit sale agreement with Commonwealth Investments Pty Limited to acquire the remaining 50% equity interest in the Northern Territory Secure Facilities PPP Project (NTSF) in Australia.
The share and unit sale agreement is conditional on the receipt of third party consents and regulatory clearance by the Australian Foreign Investment Review Board. The acquisition is expected to complete once all such consents and clearances have been obtained.
The NTSF is a new 1,000 bed correctional facility, located on a greenfield site at Holtze, near Darwin, Australia. NTSF became operational in 2014 and allows Northern Territory Corrections to engage prisoners into structured daily programs in order to foster rehabilitation and stronger re-integration.
The concession term runs until June 2044. BBGI will receive availability payments during the concession period from the Northern Territory government which is rated Aa1 by Moody's Investor Services.
Duncan Ball, BBGI Co-CEO said:
"We are very pleased to increase our stake in this high quality PPP/PFI project. This acquisition was concluded without engaging in an auction process."
Frank Schramm, BBGI Co-CEO said:
"This acquisition demonstrates our ability to efficiently add value by acquiring stakes in existing projects where our existing knowledge of the asset serves us well. BBGI will selectively pursue further growth opportunities in both new and existing assets."
The acquisition will be funded using the company's credit facility.