INPP keeps money flowing to schools

The UK-listed infrastructure fund manager has made an investment in the second phase of a three-phase Building Schools for the Future (BSF) scheme in the north-west of England. INPP bought a £60m portfolio of BSF interests in August.

International Public Partnerships Limited (INPP), a UK-listed firm that invests in public-private partnerships (PPPs), has made a £750,000 (€878,000; $1.2 million) investment for a 10 percent interest in the second phase of the Salford and Wigan Building Schools for the Future (BSF) scheme in north-west England.

The scheme, in which INPP’s partners are Laing O’Rourke Construction and Hochtief Facilities Management, consists of the contruction of three secondary schools, a primary school and community facilities for more than 3,700 students in the region.

The scheme is part of the second phase of Salford City Council’s three-phase BSF programme which involves the redevelopment of some of the city’s schools. During the first phase of the project, the consortium partners were contracted to build a number of educational facilities, two of which have since been completed.

In August this year, INPP acquired 100 percent of Building Schools for the Future Investments from the UK government’s Department for Education and Partnerships UK. The £60 million deal – which was INPP’s single largest commitment to date – brought 48 projects relating to 100 individual schools into the INPP fold. It already had an existing portfolio of 106 schools across the UK. This meant that, at the time of the deal, 32 percent of the listed fund’s net asset value was accounted for by schools.

The BSF programme was launched in 2004 by the UK’s new Labour government with the aim of rebuilding or re-modelling every secondary school in England over a 20-year period. But soon after the Conservative/Liberal Democrat coalition was elected in May 2010, the programme was cancelled with 715 projects still outstanding.

Listed in 2006, INPP invests in schools, hospitals, courts, police headquarters and transport projects in the UK, continental Europe, Australia and Canada. It seeks to provide investors with long-term government-backed yield and capital growth through investment across the construction and operational phases of concessions lasting between 25 and 40 years.