Brookfield’s Super-Core Infrastructure Fund has made its first European investment through the acquisition of five PPP projects in Spain.
The vehicle has taken stakes in the Majadahonda hospital in Madrid, the Line 9 section IV metro stations in Barcelona and three transport hubs in Madrid, bought from a consortium comprising Swiss Life Asset Managers, Denmark’s Industriens Pension and DIF III, a 2012-vintage fund that closed on €800 million.
Andrew Freeman, head of exits at DIF, said in a statement that the deal provided the Dutch group with “an attractive exit”. DIF declined to comment further.
The 80 percent stake in the portfolio was bought by the trio in August 2014 for an equity value of €175.2 million.
The deal is the first known transaction by the open-ended Brookfield fund, although it is believed to have had involvement in the formation of a joint venture with US-based Landmark Infrastructure Partners last year, targeting core infrastructure assets.
The open-ended fund was launched in May 2018 and is focused on delivering yield to investors whose profile doesn’t fit the 13 percent net return of Brookfield’s flagship infrastructure fund series. The super core vehicle targets returns of 8-9 percent and a yield of 5-6 percent. Last month the fund disclosed to the Securities and Exchange Commission that it had raised $1.6 billion and is looking to garner about $5 billion in total, targeting investments in North America, Western Europe and Australia.
Brookfield declined to comment.