Bilfinger Berger Global Infrastructure acquires stakes in three PFI social projects

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Bilfinger Berger Global Infrastructure acquires stakes in three PFI social projects

Bilfinger Berger Global Infrastructure SICAV S.A. (BBGI) has announced that it has signed an agreement with Assura Group Limited in relation to the acquisition of certain equity and subordinated debt interests in two projects where BBIG already owns a stake, being Liverpool & Sefton Clinics and North London Estates Partnerships (formerly known as Barnet & Haringey Clinics), as well as certain equity and subordinated debt interests in one of the assets it will acquire from Bilfinger Berger, being Mersey Care Mental Health Hospital.

The total consideration payable under the Assura Acquisition Agreement is £9.1 million.

The Liverpool & Sefton Clinics LIFT project is a UK concession to develop, fund, build, operate and manage primary healthcare facilities in Liverpool and Sefton. Under the Assura Acquisition Agreement, BBIG will acquire 20.0% of the equity interest in the project and 26.1% of the subordinated debt. On completion of the acquisition, BBGI will control 46.6% of the equity and 52.8% of the subordinated debt.

The North London Estates Partnership LIFT project is a UK concession to develop, fund, build, operate and manage primary healthcare facilities around Barnet, Enfield and Haringey. Under the Assura Acquisition Agreement, BBGI will acquire 20.0% of the equity interest in the project and 26.7% of the subordinated debt. On completion of the acquisition, BBIG will control 46.6% of the equity and 53.3% of the subordinated debt.

The Mersey Care Mental Health project involves transforming the former Walton Hospital site in Liverpool into a new, 85 bed, mental health in-patient facility. Under the existing Sale and Purchase Agreement with Bilfinger Group, as announced on 15 November 2013, it is proposed that BBGI will acquire 24.5% of the equity in this project (in addition to the 13.6% of equity it already indirectly owns through its holding in Liverpool and Sefton Clinics) and 40.0% of the subordinated debt. Under the Assura Acquisition Agreement, BBIG will acquire a further 28.6% of the equity and 30.0% of the subordinated debt. On completion of both acquisitions, BBGI will control 66.7% of the equity and 70% of the subordinated debt. The asset is currently in construction although it is expected to become operational during 2014.

The Assura Acquisition Agreement is conditional on BBIG raising funding and relevant third party (including shareholder) consents from project counterparties. The acquisitions are expected to be completed in December 2013 or Q1 2014 once all such consents have been obtained.

All the assets are classified as availability-based under the investment policy of BBIG and are supported by contracted, public sector-backed revenue streams, with inflation-protection characteristics.

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