3i Infrastructure has committed £4.6 million (€5.7 million; $7.7 million) to a public-private partnership (PPP) project to build a new campus for Ayrshire College in Kilmanock, Scotland, the London-listed fund manager said in a statement.
The project involves the design, build, finance, operation and maintenance of a new college campus in Kilmarnock, based on availability payments over a concession period of 25 years. The new campus is part of a wider regeneration strategy in the Kilmarnock area, the statement said. Construction is expected to be completed in May 2016.
“This new investment is in line with the Company’s strategy of building its portfolio of primary PPP projects over time, where it can access attractive risk-adjusted returns and enhance the overall portfolio, alongside its European core economic infrastructure portfolio,” 3i Infrastructure chairman Peter Sedgwick said in the statement.
The firm’s core economic infrastructure investments accounted for 81 percent of the portfolio as at 31 March 2014, whereas PPP investments and its interest in the 3i India Infrastructure Fund accounted for 12 percent and 7 percent of the portfolio respectively, according to Sedgwick.
This is the third new primary PPP investment 3i has completed since it bought Barclays’ European infrastructure investment operation, according to Ben Loomes and Phil White, managing partners and co-heads of 3i Infrastructure.
Under the deal, 3i Infrastructure becomes a shareholder in the project, while McLaughlin & Harvey is the construction contractor and SPIE Northern UK will provide facilities management services for the duration of the operational period, the statement said.