Lend Lease sells university stake to its UK fund

The Australian developer has sold its 50% stake in the University of Sheffield PFI project to the Lend Lease UK Infrastructure Fund – in keeping with its strategy of using the fund as a means of recycling capital from successful projects.

Lend Lease, the Sydney-based developer, has completed the sale of a 50 percent equity stake in the University of Sheffield Private Finance Initiative (PFI) project to its Lend Lease UK Infrastructure Fund. The purchase brings the vehicle’s funds under management to £137 million (€172 million; $213 million).

The Lend Lease UK Infrastructure Fund was launched via a joint venture between Lend Lease and Dutch pension PGGM in December 2010. It was established to invest in brownfield social infrastructure investments in the UK and has an investment period of five years and a lifespan of 28 years.

“This is the fund’s eighteenth investment and grows our invested equity from assets in the Lend Lease pipeline to £137 million, which is well ahead of our original investment profile,” said Tony Brown, managing director of Lend Lease Investment Management, in a statement.

“Our aim is to recycle capital in order to unlock new investment opportunities,” he added. “This is a high quality PFI asset which fits perfectly within the fund’s investment strategy.”

Lend Lease entered theUniversity of Sheffield PFI project in 2006 to provide student accommodation. In the following three years, it completed four phases of new build and refurbishment, adding 4,000 beds.

In February this year, the UK Infrastructure Fund acquired Lend Lease’s equity in the South Tyne & Wear waste PFI.