DIF Infrastructure III acquires a portfolio of operational UK PFI projects

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DIF Infrastructure III acquires a portfolio of operational UK PFI projects DIF Infrastructure III has announced it has completed the acquisition of a portfolio of operational projects from MBIA UK Insurance Limited.The Portfolio consists of stakes in four UK PFI projects:
  • DBFO2 road project - a 30 year, £250m DBFO PPP road project that reached financial close in 2007 and has been in operation since 2011. The project consists of the design, construction, financing and operation of 42.5km of new carriageway, and the maintenance and operation of some 80km of existing carriageway in Northern Ireland, UK. DIF-managed funds already own 70% of this project and this additional stake will give DIF control of 95% of the project.
  • Ashford social housing project - a 30 year, £25m social PFI housing project that reached financial close in April 2007. The project consists of the refurbishment, financing and operation of 325 retained Authority owned houses and the upgrading of related infrastructure in Kent, UK. DIF Infrastructure III has purchased a 66.67% share in the project.
  • Cheshire extra care housing project - a 30 year, £66m social housing PFI project that reached financial close in October 2007. The project consists of the design, development, financing and operation of 433 new build "extra care facilities" for older people located across five sites in Cheshire, Handforth, Crewe, Middlewich, Ellesmere and Winsford. DIF Infrastructure III has purchased a 66.7% share in the project.
  • Grove housing project - a 30 year, £69m social housing PFI project that reached financial close in September 2003. The project consists of the design, refurbishment and operation of an urban housing estate, consisting of 1,089 dwellings in Manchester, UK. DIF Infrastructure III has purchased a 74.5% share in the project.

DIF Infrastructure III was launched in January 2012. The fund held a first close in May 2012 and realised a final closing March 2013. The committed capital is €800 million, which substantially exceeded the target of €600 million.

The fund invests in PPP/PFI/P3 projects, renewable energy projects and other core infrastructure assets with a similar characteristics and risk/return profile in Europe and North America that provide long-term stable cash-flows with minimal commercial risk.

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