BBGI seed portfolio almost complete

Bilfinger Berger Global Infrastructure has announced the purchase of 13 assets bought from parent company Bilfinger Berger. The assets span Europe and North America.

Bilfinger Berger Global Infrastructure (BBGI) has reported the acquisition of 13 assets costing a combined £81.5 million (€97.5 million; $129 million) from parent company Bilfinger Berger.

BBGI is a so-called ‘developer fund,’ owned by German construction and engineering concern Bilfinger Berger, which began trading on the London Stock Exchange (LSE) in December after raising £212 million (€252 million; $328 million) in capital.

The disclosure from BBGI on Thursday took its portfolio to a total of 17 assets which are spread across Australia, North America and the UK, and comprise transportation and social infrastructure assets.

The assets BBGI has purchased from Bilfinger Berger include the recently announced £35.9 million acquisition of an interest in the Victoria Prisons public-private partnership (PPP) in Melbourne, Australia.

A month earlier, in February, BBGI bought The Royal Women’s Hospital project from Bilfinger Berger for £20 million. Earlier, the fund paid £31 million for a 50 percent stake in Golden Ears Bridge and Kicking Horse Pass, both in Canada.

BBGI said only two assets now remain to be transferred in order to complete its seed portfolio: the M80 motorway in Scotland and the Unna Administrative Centre in Germany.

The ‘developer fund’, such as BBGI, is a recent phenomenon in the industry, spurred by the realisation that a development business, like Bilfinger Berger, can repackage project equity into a high-yield investment vehicle.

The £270 million John Laing Infrastructure Fund, launched in 2010 by London-headquartered  John Laing, is another example of the genre.