Equity pledges by two Korean institutional investors have helped bring Turkey's €600 million Gaziantep health campus PPP project to financial close.
Private Equity Investment Fund, a dedicated vehicle advised by London- and Bratislava-headquartered InfraPartners Management and Turkey-based Actus Asset Management, is investing €60 million on behalf of two funds run by KDB Infrastructure Investments Asset Management, a subsidiary of the Korea Development Bank.
The lender itself is an investor in the project, according to the World Bank’s Multilateral Investment Guarantee Agency, which is providing a €60 million guarantee to the hospital. Samsung Life is the second known Korean institution to be plugging equity in the facility, via PEIF.
It is unclear whether the vehicle counts other LPs, and if it will seek to invest in other projects. InfraPartners, a multi-asset fund manager established in 2014, had not responded to a request for further information at press time. Actus could not be reached for comment.
The PPP’s other equity sponsors include Turkish developer KAYI, Samsung C&T Corporation and Italian construction firm Salini Impregilo. Financing is being provided by Korea Eximbank, Korea Trade Insurance Corporation, the European Investment Bank and the European Bank for Reconstruction and Development.
The Gaziantep health campus PPP involves the design, construction and maintenance of a complex that will include a general hospital, a women and children’s hospital, and a cardiovascular and oncology hospital, totalling 1,875 beds. Located in south-eastern Turkey, the facility is expected to become operational in 2020.
It is the latest project to be closed under Turkey’s €15-20 billion health PPP programme, and the fourth backed by MIGA.