INPP acquires asset from its adviser

The London-listed infrastructure fund has acquired a German PPP project from Amber Infrastructure, its investment adviser.

International Public Partnerships Limited (INPP), the London Stock Exchange-listed infrastructure fund, has acquired a 90 percent equity stake and 100 percent of the subordinated debt in a public-private partnership (PPP) project that will deliver Berlin’s new Federal German Ministry of Education and Research (BMBF) building.

The equity and debt interests are being acquired from Amber Infrastructure for €11.9 million following an independent valuation process undertaken by financial services firm KPMG. Amber Infrastructure is INPP’s investment adviser.

In order to follow investment advisory agreement protocols, Amber established separate buy and sell side teams. In addition, law firm LPA Rechtsanwalt Steuerberater independently managed the contractual negotiation on behalf of INPP.

Amber has been responsible for the development of the BMBF project since August 2011 following a European Union-wide tender process run by the Federal Bureau of Real Estate Projects (BIMA), comprising planning, construction, facilities management and financing.

Construction of the BMBF project is being delivered through a turnkey contract with BAM Deutschland, which retains a residual stake in the share capital of the project. The construction programme is currently running to schedule and is expected to complete by the end of July this year.

The new office building will comprise two connected buildings on a 13,400-square metre piece of land owned by BIMA and will have an entire gross building area of 55,500 square metres. The building will provide space for around 1,000 employees, with Amber continuing to provide asset management services.

The German Ministry of Education and Research provides funding for research projects and institutions, and sets general education policy, including providing student loans in Germany.

The project includes an availability-based payment mechanism supported by the German government and comprises a 27-year contract. The project is expected to be fully operational in August 2014 with a first distribution later in the year.

INPP’s previous German investments have included BeNEX, a passenger transport operator with several concessions across Germany, and Pforzheim Schools, a secondary school in the city of Pforzheim. Listed in 2006, INPP has investments in 122 social and transport infrastructure projects in total.