INPP boosts schools portfolio

The London-listed infrastructure investment firm has agreed to acquire interests in eight Building Schools for the Future projects from Carillion Private Finance. The latest deal stems from INPP’s takeover of a government investment arm in August last year.

International Public Partnerships (INPP), the London-listed infrastructure investor, has committed to invest around £30.3 million (€37.6 million; $47.6 million) in eight Building Schools for the Future (BSF) projects it has acquired from Carillion Private Finance, the equity investment arm of UK construction firm Carillion. 

The opportunity for investments such as these stems from pre-emption rights that INPP gained when it acquired a 100 percent stake in Building Schools for the Future Investment (BSFI) from the UK government’s Department of Education and Partnerships UK in August last year for £60 million. 

The deal will see INPP take majority interests in projects in Wolverhampton, Nottingham, Rochdale, Durham and South Tyneside and Gateshead, as well as a 46 percent interest in the Tameside BSF project, in which Tameside Metropolitan Borough Council will hold an equal stake. 

The investments were identified by INPP as part of the reason for its £200 million fundraising which was completed at the beginning of last week. The Tameside project completes immediately, while the other projects are subject to third-party consents expected to be given by early September. 

The BSF programme was launched by the new Labour government in 2004 with the aim of taking 20 years to rebuild or re-model every secondary school in England. The scheme was scrapped in July 2010 by the new Conservative/Liberal Democrat coalition, but schools that were part of the scheme prior to the scrapping continue to be developed and managed. 

INPP now has a portfolio of more than 200 schools across the UK, accounting for 33 percent of the net asset value of its fund. 

*To learn more about INPP's plans for 2012, be sure to check our interview with Giles Frost, a director at INPP, in the July/August issue of Infrastructure Investor magazine.