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INPP acquires majority stake in Nottingham BSF

The £2.75m investment comes as the London-listed fund consolidates its schools portfolio

International Public Partnerships (INPP), the listed vehicle managed by UK-based Amber Infrastructure, has bumped up its holding in the Nottingham Building Schools for the Future (BSF) portfolio.

The transaction will see the London-listed fund acquire 72 percent of the project’s second phase from UK developer Carillon for £2.75 million (€3.44 million; $4.71 million), taking its total stake in the Nottingham BSF to 82 percent. The Nottingham Local Education Partnership and the Nottingham City Council continue to own the remainder.

The project, which comprises the Farnborough School and Technology College, caters for more than 1,000 pupils in the Clifton Estate area. It is already operational and yielding, with a duration of 24 years.

The BSF initiative was launched by the Labour government in 2004 with the ambition to rebuild or renovate every secondary school in England over two decades. The programme was later replaced by the current administration but the schools at which work had started prior to cancellation continue to be actively developed and managed.

The opportunity to acquire an additional stake in the Nottingham BSF arose through the pre-emptive rights INPP gained when it acquired the government's interest in Building Schools for the Future Investments (BSFI) in August 2011. The fund now manages a portfolio of more than 200 schools.

The deal follows INPP’s increased investment in the Kent BSF, comprising three secondary schools on separate sites with an average remaining life of 22 years, in February 2014. The same month also saw it divest minority stakes in the Hull, Leeds, Newcastle, Rochdale and Sandwell BSF projects to the Dalmore Capital Fund, and its minority interest in the Leicester BSF project to Semperian Investments.

Both secondary infrastructure investors already owned significant stakes in these projects.