Dutch deal as 3i steps up PPP exposure

A 28% stake in a Netherlands’ office building and laboratories is part of 3i Infrastructure’s increased focus on primary PPPs.

3i Infrastructure, the London Stock Exchange-listed infrastructure investment firm, has committed to invest €5.1 million for a 28 percent interest in the RIVM project in the Netherlands.

The project is a primary public-private partnership (PPP) to build the new premises of the National Institute for Public Health and the Environment and the Dutch Medicines Evaluation Board in Utrecht.

In a statement, 3i Infrastructure said the deal was consistent with its strategy of increasing its portfolio of primary PPP projects where it can “achieve attractive risk-adjusted returns and enhance the overall portfolio” alongside its European core economic infrastructure portfolio.

Peter Sedgwick, chairman of 3i Infrastructure, described the investment as “a further step in the continued delivery of the investment strategy to increase in a measured way our portfolio of primary PPP projects over time”.

The project was procured by the State of the Netherlands, represented by the Central Government Real Estate Agency, which is part of the Ministry of Interior and Kingdom Affairs.

It involves the design, build, finance, operation and maintenance (DBFOM) of a 70,000 square-foot facility comprising an office building and laboratories on the site of the Utrecht Science Park. Construction is expected to complete in November 2018.

A joint statement from 3i Infrastructure managing partners and co-heads Ben Loomes and Phil White pointed out that the deal was the firm’s second Dutch primary PPP investment and that the Dutch market was “proving to be attractive” for this type of deal.