News & Analysis

BAM/PGGM JV, InfraVia buy into German road

The buyers have acquired a 75% stake in the PPP project from BAM PPP, Fluor and VolkerWessels.

-

A joint venture between Dutch pension administrator PGGM and developer BAM PPP as well as French fund manager OFI InfraVia has purchased a majority stake in a German road project. 

The deal, closed for an undisclosed amount, will see the BAM/PGGM joint venture acquire a 50 percent stake in the road, with InfraVia buying 25 percent of the concession project. The sellers are BAM PPP (25 percent), Fluor Infrastructure (25 percent) and VolkerWessels Deutschland (25 percent). 

Egis Investment Partners (19 percent) and Berger Bau (6 percent) are the remaining shareholders in the A8 A-model project, a 30-year concession to widen, operate and maintain a section of the A8 highway between Augsburg and Munich, completed in 2010. 

The A8 project is tolled, with revenues based on the number of heavy vehicles using the motorway section. 

“The A8 is an excellent transportation infrastructure asset […] which aligns perfectly with our investment strategy in mid-size, brownfield, real infrastructure assets,” Vincent Levita, founder and chief executive of InfraVia, commented in a statement. 

InfraVia is out in the market raising its second, €400 million infrastructure fund, having already held a first, €150 million close on it last July. The fund will target the European mid-cap infrastructure market. 

The BAM/PGGM joint venture has been busy adding assets to its portfolio this year. Earlier this month, the partnership reached financial close on a road project in Ireland worth €282 million. The joint venture now holds investments in at least 12 PPP projects and is worth in excess of €140 million. In April, PGGM said the two partners were involved in bidding for 13 PPP projects across BAM PPP's target markets of the Netherlands, Belgium, the UK, Ireland, Germany and Switzerland. 

PGGM is a pension fund service provider for five Dutch pensions, managing circa €140 billion for 2.5 million people. BAM PPP is part of the Royal BAM Group, a global construction company with revenues of some €7.4 billion.