DIF Infrastructure III acquires prison PPP in France

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DIF Infrastructure III acquires prison PPP in France

Dutch infrastructure fund DIF Infrastructure III has announced that it has completed the purchase from RBS and Dexia Credit Local of 81% of a portfolio of operational prisons, named Themis.

Themis owns 100% of 3 prisons located in Le Havre, Le Mans and Poitiers, under a PPP Contract (AOT LOA) signed with the French Ministry of Justice in October 2006. The three prisons, designed and built by subsidiaries of Bouygues Construction, were all completed in 2009 and are operated by Themis FM, a JV between Bouygues Energies & Services and Idex.

The scope of the O&M contract excludes services to the inmates, which are taken care of by prison staff employed by the French Ministry of Justice.

The ca. €190 million project benefits from long-term debt finance provided by a consortium of five banks, including DexiaRBS, KBC, BayernLB and Mizuho.

Thomas Vieillescazes, partner of DIF and head of France states:

"This transaction perfectly fits our investment strategy of investing in infrastructure assets with long-term stable cash flows and reinforces DIF's position in the French market. It also confirms that the French PPP market is becoming more mature, with the emergence of substantial secondary market opportunities".

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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