AMP Capital signs A$232m Aussie schools deal

The Australian fund manager has won the approval of the South Australian government to acquire a collection of schools under the South Australian Schools public-private partnership project.

Australian fund manager AMP Capital has gained approval from the South Australian government to acquire the South Australian Schools public-private partnership (PPP) project.
 
AMP Capital has acquired the project, which has an enterprise value of A$232 million (€181 million; $230 million), on behalf of a number of funds and clients including the AMP Capital Community Infrastructure Fund and Core Infrastructure Fund. 
 
The project includes six newly constructed schools in Adelaide, including primary, middle, secondary and special education schools as well as child care centres. 
 
“This transaction was sourced through a non-competitive, direct negotiation process and is expected to deliver attractive, double digit investment returns to our clients across the project’s remaining 27-year concession period,” said Paul Foster, AMP Capital’s head of infrastructure for Australia and New Zealand. 
 
AMP Capital’s funds and clients are acquiring 100 percent of the equity in the project from developer Lend Lease and the Commonwealth Bank of Australia. AMP Capital is also becoming the asset manager of the project. 
 
Since assuming management of the Community Infrastructure Fund in September 2010, AMP Capital has acquired a further four social infrastructure assets, bringing the total number of assets in the portfolio to eight.