LONDON (Alliance News) - 3i Infrastructure PLC on Friday said it signed an agreement to invest about EUR200 million in TCR, Europe's largest independent asset owner of airport ground support equipment, in a consortium with Deutsche Asset Management.
3i Infrastructure and Deutsche AM's infrastructure investment business will each acquire economic interests in TCR of up to 50%, with management to retain the remaining equity.
3i Infrastructure and Deutsche AM are purchasing their interests from the current owners, Chequers Capital and Florac.
Completion of the transaction is conditional requires clearance from the European Commission, which is anticipated by the end of August 2016.
3i Infrastructure also said it exercised the accordion option in its revolving credit facility, increasing liquidity by a further GBP200 million until December 2016.
"We are pleased to be investing in TCR, which fits our strategy of investing in companies with good asset backing, strong market positions and barriers to entry, yet with operational levers to achieve attractive returns for 3i Infrastructure's shareholders," Chairman Richard Laing said in a statement.
Separately, 3i Infrastructure said it committed to invest about EUR5.0 million to acquire a "significant" majority stake in Coeur du Sud BV, a special purpose vehicle created for the Hart van Zuid primary public private partnership project in Rotterdam.
The other shareholders are entities of the Heijmans and Ballast Nedam groups, 3i Infrastructure said. The EUR200 million project involves the renewal and revitalisation of the area surrounding the Zuidplein and Ahoy centres with the Municipality of Rotterdam.
The Ahoy convention centre will be expanded to include an international conference centre, a music hall, a cinema and a hotel, 3i Infrastructure said.
In addition, an art building with a library and theatre will be constructed on the new Plein op Zuid square. The Zuidplein shopping centre will be renovated and expanded and the new Charlois swimming pool will be incorporated into the current city hall. The metro and bus transportation hubs will be renewed. Construction will begin in the second quarter of 2016.
"This investment adds to our growing portfolio of primary PPP projects, alongside our economic infrastructure investments, and demonstrates our ability to originate attractive investment opportunities through our relationship with primary developers," Laing said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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3i Infrastructure (3IN)