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28 Oct 2008 07:00
BeNEX WINS SIGNIFICANT NEW CONTRACT
Babcock & Brown Public Partnerships Limited ("BBPP" or the "Company") advises that its German transportation investment vehicle, BeNEX, has been awarded a further significant rail tender in the Federal State of Bavaria. BBPP holds a 49% stake in BeNEX which is a 51% subsidiary of Hamburger Hochbahn AG, the second largest LPPT (Local Public Passenger Transportation) company in Germany. The contract in the region of Upper Franconia comprises a total volume of 4.5m rail kilometers per annum and has a term of 12 years commencing in 2011. Forty vehicles will be procured for the operation. Total investment will be approximately £55m which will be funded from existing reserves established at the time of BBPP's initial in BeNEX. The contract is expected to reach contractual close in December 2008.
BeNEX was awarded the contract against competition from major incumbent, DB Regio, as well as local and international competitors. This is the second concession acquired by BeNEX in the Federal State of Bavaria and one of the largest LPPT contracts awarded in Germany this year. The additional investment would be in line with BeNEX's business plans to expand its existing rail and bus concession business.
Following the commencement of operations in 2011, BeNEX will be the largest private rail provider in the Federal State of Bavaria and, together with the Regensburg contract which was awarded to BeNEX in 2007, will provide a total of 10m rail kilometers to the State, supported by approximately 300 employees.
In total, BeNEX will provide total service volume of 29m rail kilometers per annum, which is an increase of more than 100% compared to the 14m rail kilometers at the time of BBPP's initial investment in BeNEX in August 2007. BBPP's investment in BeNEX is managed by two dedicated BBPP executives who have been involved with BeNEX since its inception.
Giles Frost, CEO of BBPP, said, "This is excellent news for BeNEX and for BBPP. This demonstrates the real potential of our partnership with BeNEX and Hamburger Hochbahn whose experience and strong track record in the German LPPT market complements BBPP's experience in the development and financing of public private partnerships.
"The privatisation of the German LPPT market is in the earliest stages and BBPP, through BeNEX, hopes to continue to participate actively in its future development."
For further information, please contact:
Babcock & Brown Public Partnerships +44 (0)20 7203 7300
Investors Bianca Francis
Media Anthony Kennaway
About Babcock & Brown Public Partnerships:
Babcock & Brown Public Partnerships Limited is a Guernsey incorporated company. The Company offers shareholders an exposure to investment in infrastructure assets, particularly those with a public or social character such as those developed under private finance initiative(PFI) or public private partnership (PPP) procurement.
The Company floated on the main market of the London Stock Exchange on 9 November 2006 and at 30 June 2008 had a net asset backing per share of 109.5p. The Company was admitted to the FTSE AllShare and the FTSE 250 in 2008. The Company's assets are diversified geographically as well as across several PFI/PPP sectors, including roads and tunnels, rail, schools, courthouses, police and custodial facilities, government offices and health facilities. BBPP is managed by a dedicated team of more than 30 executives who are employed by Babcock & Brown Investment Management Limited (BBIML), a subsidiary of Babcock & Brown.