Dutch infrastructure fund manager DIF has agreed to acquire an additional 25 percent stake in a joint venture with BAM PPP, the public-private partnership investment arm of Netherlands-based building and construction company BAM Group.
BAM said in a statement that it expects the secondary transaction to result in a book profit of approximately €10 million.
The two firms established the joint venture in December 2007 when BAM PPP transferred four UK PPP projects from its portfolio into the joint entity. At the time, DIF took a 25 percent stake in the joint venture for approximately €12.5 million, with the understanding that both parties would have equal ownership by the end of 2009.
The transaction, expected to close in early December, is a continuation of this divestment programme.
DIF will acquire the shares in the joint venture from its first fund, DIF PPP, which closed on €150 million in 2006 and has now been almost fully invested. DIF PPP also acquired the initial tranche of 25 percent in the joint venture.
DIF recently held an initial close on DIF Infrastructure II, the successor to DIF PPP.
DIF Infrastructure II recently held an initial close on €200 million. DIF said that both DIF PPP and DIF infrastructure II are currently involved in several primary and secondary and primary PPP transactions in Europe, mainly the United Kingdom, France, the Netherlands and Belgium.
As of May 2007, BAM PPP had more than 25 PPP projects in its portfolio, 17 of which were operational. It is active in the Netherlands, Belgium, UK, Ireland and Germany in the road rail, education, health and law & order PPP sectors.