INPP makes first investment in the US

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INPP makes first investment in the US

International Public Partnerships Limited (INPP) has announced its first acquisition in the US from the Federal Home Loan Mortgage Corporation (Freddie Mac).

The company has invested approximately US$48 million into a series of fully yielding mezzanine debt instruments with a remaining average life of 37 years. The investment has been funded through a combination of INPP's cash reserves and its corporate debt facility.

The mezzanine debt is underpinned by security over seven operational PPP military housing projects relating to a total of 19 operational military bases in the US comprising approximately 21,800 individual housing units. The military housing projects have the following characteristics:

  •  a secure revenue stream via the US military's Basic Allowance for Housing paid to service personnel creating an indirectly government sourced revenue payment;
  • high barriers to entry as the number of on-base housing units is limited;
  • no residual value exposure;
  • a geographically diverse portfolio of housing units across the continental US including some of the largest and most critical of US military installations.

According to INPP, the deal was identified as a consequence of the Hunt Companies Inc's shareholding in the company's investment adviser, Amber Fund Management Limited (AFML) and the relationship that exists between Hunt and INPP with respect to US opportunities.

Commenting on the acquisition Chairman of INPP Rupert Dorey stated:

"We are pleased to have made our first investment in the US.  Military Housing schemes have an established track record in the US and we believe that this opportunity not only provides an attractive return for our shareholders but potentially opens the door to further attractive opportunities in one of the world's largest infrastructure markets."

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