AMP Capital lands 50% of schools project

The fund manager has acquired a large chunk of the A$250m South East Queensland Schools PPP from Commonwealth Bank of Australia.

Australian fund manager AMP Capital has acquired a 49.99 percent equity interest in the South East Queensland Schools Public-Private Partnership (PPP) from Commonwealth Bank of Australia.

The project has an enterprise value of more than A$250 million (€169 million; $226 million) and has a remaining concession period of 26 years.

It involves the design and construction as well as the maintenance and operation of seven new schools accommodating more than 5,790 students in high-growth areas of the Sunshine Coast, Western Corridor, Gold Coast and Redlands.

AMP Capital’s investment in the project comes from its AMP Capital Community Infrastructure Fund.

According to AMP Capital investment director Julie-Anne Mizzi, the PPP “provides our clients with the opportunity to access stable, long-term, CPI-linked cash flows underwritten by availability-based payments from the Queensland government”.

Mizzi pointed out that AMP Capital now has a portfolio of 24 schools in New South Wales, Queensland and South Australia under PPP arrangements, providing 16,700 places to primary, secondary, early childhood and special education students.

The AMP Capital Community Infrastructure Fund invests in social infrastructure PPPs in the education, health, justice, defence, community housing, recreational facility and transport sectors. It now has eight concessions in Australia and New Zealand.

Yesterday, AMP Capital announced that Singapore’s GK Goh was taking a 47.62 percent stake in Australian residential aged care provider Domain Principal Group for A$136.7 million, while AMP Life was raising its stake – also to 47.62 percent – from 42.5 percent. AMP Capital manages the asset.