Infracapital in €700m Italian deal

The UK manager has acquired a pool of PPP assets from developer Condotte, its first investment in the Southern European country.

Infracapital, the infrastructure arm of the UK’s M&G Investments, has bought an 80 percent stake in a portfolio of PPPs from Italian developer Societa' Italiana Per Condotte d'Acqua.

The pool of assets comprises both operational and greenfield projects in the fields of health, transport and security. It has a total value of €700 million.

Specifically, the portfolio includes three hospitals (two in Milan and one in Florence), a shuttle train service connecting Pisa Airport to Pisa Centrale station, a tri-generation energy centre serving Careggi University Hospital in Florence and Bolzano prison, the first Italian PPP prison due to start construction later this year.

“This transaction provides Infracapital with a high-quality platform of PPP projects in Italy, a country which has successfully embraced the PPP model and offers numerous opportunities in the social infrastructure space,” said Andy Matthews, greenfield director at Infracapital.

The move comes little more than a year after Infracapital launched its greenfield unit, naming ex-3i partner Matthews at its helm. The firm then launched a £1 billion ($1.4 billion; €1.3 billion) dedicated fund last February.

Infracapital last October established a UK-focused bioenergy platform alongside Helios UK BIG, Aurium Capital Markets and the Foresight Group. It pledged £160 million to the venture, with Helios committing £30 million.

The firm had previously invested £20 million in Gigaclear, a company bringing faster broadband connectivity to the UK’s rural areas, on behalf of parent group Prudential. It injected another £24 million in the business alongside Woodford Investment Management last month.