International Public Partnerships ups stake in UK schools projects

International Public Partnerships has snapped up a larger stake in a UK school refurbishment project from Carillion for £1.5m, which it said would immediately contribute to its portfolio returns.

INPP upped its stake in the Wolverhampton Building Schools for the Future (BSF) project by buying two 8% stakes in the first and second phases of the project from Carillion Private Finance.

The investment group made the acquisitions through rights that it gained when it bought the Department of Education's investment delivery vehicle, Building Schools for the Future Investments, in 2011.

It said the Wolverhampton project investment meets INPP's investment criteria as the debt is non-recourse at the project level and matched to the life of the project, it has a long operational life with a 25-year phase II concession due to expire on the 31 August 2040 and that the project is operational and yielding and will contribute to INPP's portfolio return "immediately upon acquisition".

The investment has been completed at a projected return that INPP regards as attractive compared to current market conditions and will be funded through existing cash balances.