International Public Partnerships Regulatory News (INPP)

2 Mar 2007 07:30

Babcock&Brown Public Ptnrships Ltd02 March 2007 Babcock & Brown Public Partnerships acquires Durham Courthouse contract in Toronto, Canada Babcock & Brown Public Partnerships Limited (LSE: BBPP) ('BBPP' or the'Company'), the internationally focused public infrastructure fund, todayannounced the acquisition of 100% of the equity in Access Durham Justice, thecompany developing the Durham Courthouse project in the City of Oshawa, Ontario.The development value of the courthouse is some CAN$262.4m (£115m). The contract is a Canadian "P3" (Public Private Partnership) projectcommissioned by the Province of Ontario through the Ontario InfrastructureProject Corporation (OIPC) to design and build and then operate and maintain a33 courtroom public courthouse for a period of 30 years. It is anticipated thatthe construction phase will take 34 months after which the 30 year contract willcommence. The building will be returned to the OIPC at the end of this period. BBPP is committing to invest approximately CAN$15m (£6.6m) and is investing atpar value in the transaction. Construction will be undertaken for Access JusticeDurham by leading Canadian contractor PCL with facilities management by JohnsonControls. Giles Frost, Director of BBPP, said, "This is another exciting acquisition forthe Company. It is the Company's first acquisition of a PPP investment in NorthAmerica and illustrates our ability to access attractive transactions around theworld. Most developed countries now have PPP programmes and we believe we haveunrivalled access to the opportunities these programmes bring. It isparticularly noteworthy that again the Company has secured the opportunity toinvest in this project at par value at financial close. The Company continues topursue a policy of seeking investments in projects both at their commencementand through the acquisition of more mature project investments from others." "The investment was sourced by the Company's investment adviser, Babcock & BrownInvestment Management Limited (BBIML), a subsidiary of the Babcock & Browngroup, whose worldwide network of 26 offices staffed by more than 1000 staff(including more that 300 dedicated infrastructure specialists), offerssubstantial resource in the origination and execution of investmentopportunities for the Company. " "We remain focused on delivering shareholder value by pursuing internationalpublic infrastructure opportunities that offer stable long-term cashflows andattractive returns relative to their risk profile." For further information, please contact: Babcock & Brown Anthony Kennaway +44 (0)20 7203 7300 Notes to Editors About Babcock & Brown Public Partnerships Limited: Babcock & Brown Public Partnerships Limited (LSE: BBPP) is a limited liability,Guernsey incorporated, closed-ended investment company. The Company offersshareholders an exposure to investment in infrastructure assets, particularlythose with a public or social character such as those developed under publicbodies under private finance initiative or public private partnershipprocurements. The Company floated on the main market of the London Stock Exchange on 9thNovember 2006 and on 23 February 2007 had a market capitalisation of £309million. The portfolio comprises 24 projects - 13 developed under the UK PFIPrivate Finance Initiative; 6 under the UK NHS Local Improvement Finance Trustprocurement, 4 Australian PPP projects and this new Canadian PPP contract. Thereis diversification across several PPP/PFI sectors, including roads and tunnels,railways, schools, courthouses, police and custodial facilities, governmentoffices and health facilities. Babcock & Brown has been responsible for thedevelopment and management of the majority of these assets and through Babcock &Brown Investment Management Limited (BBIML) will continue to manage them for thebenefit of BBPP. In the future BBPP intends to capitalise on the development andinternationalisation of private finance initiative (PFI) and public privatepartnerships (PPP) procurement models for public infrastructure in otherdeveloped countries, which it is anticipated will provide numerous investmentopportunities for BBPP. This information is provided by RNS The company news service from the London Stock Exchange