JLIF: secondary activity staying strong

The London-listed PPP investment firm says that it has been invited to bid for more than 60 stakes in the year to date.

John Laing Infrastructure Fund (JLIF) says that the secondary public-private partnership (PPP) market remains strong.

The firm, which has been invited to bid for more than 60 stakes in 2014 to date, reported portfolio growth of 7.16 percent to £809.9 million (€1.0 billion; $1.3 billion) in its interim management statement for the period 1 July to 7 November 2014.

It said the stakes offered were “predominantly” in the UK but included assets located in Germany, Spain, France, Denmark, the Netherlands, Ireland, Hungary and Australia.

The firm added that, as well as individual assets, it was also being offered portfolios. JLIF previously completed one such deal when it acquired 11 assets from the Investors in the Community fund for around £123 million in July last year.

In September, the firm raised gross proceeds of £50 million which it has used for the acquisition of three availability-based operational assets from John Laing.

Two of the deals (a 40 percent stake in the Groningen Tax Office in the Netherlands, and a 50 percent interest in the South East London Police Stations project) have completed. A third deal, comprising a 100 percent stake in the North Birmingham Mental Health project, is expected to complete “in the near future”.

Andrew Charlesworth, director of John Laing Capital Management, the investment adviser to JLIF, said the firm was continuing to receive “very strong demand” from investors and pointed out that its market capitalisation was now more than £1 billion, compared with £270 million when it launched less than four years ago.

However, he added that JLIF was still “banging the drum” to attract greater support for listed infrastructure from UK pensions.