1st Jun 2020 09:22
(Alliance News) - International Public Partnerships Ltd on Monday reaffirmed that the operational performance of its portfolio remains in line with expectations, with no material change since early April.
Tideway, which represents 9.2% of the portfolio, said early May that it has recommenced work at most of its construction sites, however the Covid-19 outbreak and associated government guidance will result in some degree of extra costs and delays to the project.
Meanwhile, for Diabolo Rail, which reflects 8.6% of investments, passenger numbers have been significantly lower than the same period the year before though are showing some signs of recovery, despite 75% of revenue being linked to usage of the rail link itself or the wider Belgian rail network.
In the period since January 1, International Public Partnerships made new investments of GBP11.5 million, including previously existing commitments.
As at May 26, the investment firm committed a further GBP6.8 million to acquire stakes in the two private finance initiative companies of the Essex Building Schools for the Future Project, which owns four schools in the county.
The acquisitions will increase IPP's existing investment to 28% on phase one of the project and 100% for phase two.
Within the group's portfolio, which has a weighted average investment life of 34 years, 9.2% of the assets are still under physical construction. As at December 2019, the portfolio comprised economic interests in 130 projects and businesses.
"While we are in no way complacent about the future, which is full of uncertainties, we take comfort from the fact that the overwhelming majority of our assets benefit from payments either linked to the availability of that asset for use, or made through a legislatively backed regulated mechanism," IPP stated.
"In addition, the company continues to monitor developments as Brexit preparations progress and as previously expressed, we do not believe that we are unusually exposed or that there will necessarily be a significant impact on the company's existing investments," the group stated.
Shares in IPP were up 0.1% at 160.80 pence on Monday in London.
By Dayo Laniyan; [email protected]
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