3rd Feb 2014 12:21
LONDON (Alliance News) - International Public Partnerships Limited (INPP) Monday said it has agreed to a number of transactions within is Building Schools for the Future (BSF) portfolio, which aims to increase investment in secondary school buildings in England.
Working with Kent County Council, INPP has been contracted to acquire 60% of Kier Project Investments' 80% interest in the Kent BSF education project.
INPP will invest GBP7.2 million and will own 58% of the project, which comprises three Kent secondary schools, with Kent County Council owning the remaining 42% on completion of the transaction.
In two separate transactions, INPP has agreed to divest its minority interests in the Hulls, Leeds, Newcastle, Rochdale and Sandwell BSF projects to the Dalmore Capital Fund and its minority interest in the Leicester BSF project to Semperian Investments.
INPP said it had no realistic scope to increase its holding in these particular projects to majority controlling holding and therefore considered that, based on the price offered, a sale would be in its best interest.
The proceeds of the sale due on completion is approximately GBP18.8 million which is in excess of the price paid when purchased in August 2011 and offers a significant premium to the 8-9% internal rate of return target of the company.
INPP said it expects to re-invest the proceeds from the sale in the current pipeline of new infrastructure opportunities being developed by it and its investment adviser.
The stock was trading at 127.70 pence Monday, down 0.50 pence or 0.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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