LONDON (Alliance News) - 3i Infrastructure PLC on Wednesday said it has committed to invest EUR6.5 million in a motorway project in the Netherlands, giving it an effective 60% interest in the project.
The infrastructure investment fund said it was investing in the A27/A1 primary public private partnership project as part of a consortium, known as 3Angle BV, which also comprises of Heijmans Capital and management and design-build services company Fluor Ltd.
Heijamns Capital is a joint venture between European construction services business Heijmans NV and 3i Infrastructure, with 3i Infrastructure holding an 80% stake.
3Angle is responsible for the financing, design, construction, management and maintenance of the reconstruction of the A27 motorway, which will run between Utrecht North and the Eemnes junction, and of the A1 motorway running between the Eemnes junction and the Bunschoten-Spakenburg interchange.
3Angle has reached financial close the the project, following the provisional awarding of the project announced on June 30, 3i Infrastructure said.
The project's contract value amounts to around EUR220.0 million, including maintenance and management for a period of 25 years.
In light of the investment, 3i Infrastructure said all the required financing for the project has been secured, both through loan capital and equity. The equity is contributed equally by the three 3Angle shareholders, but, as 3i Infrastructure holds a stake in the Heijmans Capital joint venture, 3i Infrastructure's interest in the motorway project is around 60%.
"This investment adds to our growing portfolio of primary public private partnership projects, alongside our economic infrastructure investments, and demonstrates our ability to originate attractive investment opportunities through our relationships with primary developers," said Chairman Richard Laing.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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3i Infrastructure (3IN)