INPP acquires majority position in Nottingham BSF portfolio

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INPP acquires majority position in Nottingham BSF portfolio

International Public Partnerships Limited (INPP) has acquired an additional 72% direct investment in the second phase of the Nottingham Building Schools for the Future (BSF) portfolio, increasing INPP's exposure to the project from 10% to 82%.

The opportunity to acquire the interest in the project has arisen through pre-emptive rights that INPP gained as part of its 100% stake in Building Schools for the Future Investment (BSFI).

INPP will invest £2.75 million (US$5.55 million) for an additional 72% interest from Carillion Private Finance. Following the sale INPP will hold an 82% interest in the project with the Nottingham Local Education Partnership and the Nottingham City Council holding the other remaining direct project interests.

The project comprises the Farnborough School and Technology College and caters for over 1000 pupils in the Clifton Estate area.  Like the other BSF projects in which INPP invests, the current investment meets INPP's investment criteria:

  • The investment debt is non-recourse at the project level and matched to the life of the project;
  • The investment has a long operational pipeline, with a remaining operational term of 24 years;
  • The investment conforms to the typical UK BSF PFI project funding structure ;
  • The project is operational and yielding and will contribute to return immediately.

The investment has been completed at a level of projected return that INPP regards as attractive compared to current market conditions and demonstrates the value of the pre-emption rights INPP acquired as part of the original BSFI investment.

Rupert Dorey, Chairman of International Public Partnerships, stated:

INPP is pleased to have acquired this additional interest in the Nottingham BSF project, further bolstering its BSF portfolio.  We continue to see a very strong pipeline of projects not only through our pre-emptive position in the BSF portfolio but other assets that the Company originates through its Investment Advisor, Amber, and remain well placed to make further investments during the remainder of 2014.

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