1st Jul 2016 16:30
LONDON (Alliance News) - International Public Partnerships Ltd on Friday said it is purchasing interests in ten Building Schools for the Future investments from Balfour Beatty PLC for GBP72.6 million.
International Public Partnerships said, following the transaction, it will hold interests in 14 of the Building Schools for the Future projects, which aims to rebuild or re-model schools.
Owing to its established position in UK education infrastructure, International Public Partnership already holds 10% interests in seven of the Balfour Beatty's investments in question, and as a result completion of the transaction will increase its stake to 90% in each scheme post-acquisition, the company said.
International Public Partnerships said the additional interests were secured through pre-emption rights that it gained as part of its ownership of Building Schools for the Future Investments LLP, which it bought in 2011 from the UK government's Department for Education and Partnerships UK. Building Schools for the Future Investments holds interests in many of the Building Schools for the Future projects.
International Public Partnership said it has funded the acquisition through its debt facility, and, after the draw down, will be GBP96.3 million drawn against its GBP300.0 million revolving corporate debt facility.
"International Public Partnerships has cemented its leading position in long-term investment into UK private finance initiatives schools. Through the company's majority stake in the Buildings Schools for Future portfolio, we have enhanced our education portfolio to cover over 247 schools," said Chairman Rupert Dorey.
Shares in International Public Partnerships closed up 0.2% at 151.86 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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