9th Dec 2022 09:51
(Alliance News) - International Public Partnerships Ltd on Friday announced its acquisition of five infrastructure investments in New Zealand.
The London-based infrastructure and business investment firm said it purchased the investments from HRL Morrison & Co for about NZD200 million, or GBP104 million.
Three of the investments are school projects, representing investment in 11 schools across New Zealand, procured via public-private-partnership concessions with the New Zealand Ministry of Education.
The company also purchased investment in Auckland Prison, with the project company only being responsible for maintenance of physical assets, while the New Zealand Department of Corrections provides custodial services.
International Public Partnerships also acquired a purpose-built student accommodation facility at the Auckland University of Technology, underpinned by an agreement with AUT guaranteeing 96% rental occupancy.
The company says that these investments, all of which are already operational, will deliver long term stable cash flows, adding that the average remaining investment life of the projects is more than 24 years.
Chair Mike Gerrard said: "We have entered the New Zealand market with a portfolio of high-quality assets primarily within the education sector. This investment builds on our education sector expertise and includes six large secondary schools and five primary schools located across the country. We'll also be providing housing for around 200 students at AUT's North Shore Auckland campus."
The company said the financial close of the acquisition is expected to take place in the second quarter of 2023, after regulatory approval.
International Public Partnerships shares were down 0.3% at 149.80 pence per share on Friday morning in London.
By Harvey Dorset, Alliance News reporter
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