Pensions Infrastructure Platform

PIP TO ACQUIRE PORTFOLIO OF INTERESTS IN UK PPP PROJECTS

  • Exceeded Initial objective of securing £600m from UK pension schemes
  • Acquisition means that PiP has successfully completed 6 transactions during the last 18 months for 15 underlying infrastructure assets/portfolios

Pensions Infrastructure Platform(“PiP”), the specialist infrastructure investment manager established to facilitate long term investment into UK infrastructure by pension schemes, has today announced that it has reached agreement with Aberdeen UK Infrastructure Partners LP (“Aberdeen”) to acquire a portfolio of interests in UK public-private partnership projects for just over £400m. PiP will manage the interests directly.

The acquisition, by the PiP Multi-Strategy Infrastructure Fund (“MSIF”), includes hospitals, highways operations and maintenance contracts, energy from waste projects and social housing.

During 2017 PiP has acquired a portfolio of 6 solar energy parks, a stake in a ferry company and now these social infrastructure assets, bringing all of them into the direct ownership of UK pension schemes.

PiP has now exceeded its initial funding objective by securing almost £750m of investment from 7 pension schemes, and has an experienced investment, asset management and operational team in place.

PiP invests for the long-term on behalf of pension schemes and their members. It owns and manages assets capable of providing 20-30 years or more of inflation linked cash flows to help schemes meet their long-term pension payment obligations. It will continue to build on these investments to deliver a diversified portfolio of UK infrastructure assets for pension schemes and their members.


Mike Weston, Chief Executive of PiP says: “These projects deliver vital facilities from which essential public services are provided to many thousands of people in England and Scotland. We are looking forward to working closely with the public-sector owners over the next 20-30 years to ensure these facilities are maintained and operated to the highest possible standards.”

“This transaction is a milestone for PiP, taking us close to £750m of assets under management just 18 months after the launch of our first fund. It demonstrates that it is possible for a group of UK pension schemes to collaborate to make long-term investments in infrastructure. Our buy and hold investment strategy, together with our cost efficient and responsible approach to asset management, ensures that maximum value is delivered to pension scheme investors and their members. As PiP continues to grow even more benefits will be secured for them.”

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INFRACAPITAL AGREES TO SALE OF RED FUNNEL TO UK AND CANADIAN PENSION SCHEMES

Infracapital announces that it has agreed to sell its 100% equity stake in Red Funnel, the original Isle of Wight ferry company, to a consortium of UK and Canadian pension schemes led by the West Midlands Pension Fund and the Workplace Safety and Insurance Board of the Province of Ontario.

The West Midlands Pension Fund is one of the UK’s largest pension funds. Its investment is facilitated by Pensions Infrastructure Platform, which enables UK pension schemes’ long-term investment into UK infrastructure.

In 2016, Red Funnel carried over 873,000 vehicles and 3.4 million passengers, compared to 555,000 vehicles and 3.0 million passengers in 2006.

Ed Clarke, Co Founder and Director of Infracapital, said:

“Red Funnel provides essential services to both residents of and visitors to the Isle of Wight and we are very proud to have supported the business over the last decade. The hard work of the management team and the investments we have made have yielded significant benefits to customers, the local community and its economy. We are confident that Red Funnel will continue to grow under its new ownership and wish the business and its employees every success.”

Michael Campbell, Director of the consortium, said:

“We are delighted to acquire Red Funnel in a partnership comprising UK and Canadian pension schemes. Red Funnel, which plays a critical role within its community, is led by a strong management team and a committed workforce who are dedicated to delivering reliable, safe, essential Isle of Wight ferry services. We are pleased to continue the tradition of investment in this proud 150 year old company.”

Kevin George, CEO of Red Funnel, said:

 “We are very grateful for the support provided by Infracapital and our customers over the last 10 years. Red Funnel has benefited hugely from a wide-ranging programme of investment and improvement, and I’m delighted that these are being recognised with fantastic customer feedback and repeat visitors. We are all excited to be working with the consortium as we continue to grow the business and provide safe and reliable ferry services, value for money and great customer service.”

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PIP’S MULTI-STRATEGY INFRASTRUCTURE FUND ACQUIRES SIX UK SOLAR FARMS

Pensions Infrastructure Platform (PiP), a dedicated infrastructure investment manager established by pension schemes, for pension schemes, to facilitate long term investment into UK infrastructure, has today announced that it has reached an agreement with Trina Solar Limited (Trina Solar) to acquire six 5MW solar farms following the successful conclusion of each farm’s construction phase. The initial tranche of the acquisition, by the PiP Multi-Strategy Infrastructure Fund (MSIF), is for three operational solar farms grid-connected before the end of March 2016 with the remaining three farms to be completed once they become operational. The nature and location of the six assets provide a well-balanced and geographically diversified portfolio.

PiP will also look to use the scale of the current portfolio as a foundation for further, carefully targeted acquisitions of similar assets.
Combining the well-known ROC support regime with conservative offtake arrangements and long term operation and maintenance (O&M) contracts will provide investors the opportunity to benefit from 20 years of inflation linked cash flows to help them meet their long term pension obligations. PiP was advised on the transaction by KPMG (financial), Eversheds (legal), Everoze (technical), EY (accounting and tax), and Cornwall (market).

MSIF will continue to build on this, and its previous debt and equity investments, to deliver a broadly diversified portfolio of UK infrastructure assets for its pension scheme investors.

Mike Weston, Chief Executive of PiP says: “This is the fourth investment made by the PiP team on behalf of UK pension scheme investors in the last six months. PiP has made huge progress towards its ultimate goal of providing UK pension schemes with a better way of investing into infrastructure. Last year PiP received FCA authorisation, launched the PiP Multi-Strategy Infrastructure Fund, grew the team to eight and added three new independent directors to its Board. This gives us a great foundation for the year ahead.”

Ed Wilson, Chief Investment Officer of PiP says: “We are pleased to have been able to work with Trina Solar to structure and execute a transaction that provides our investors with the long term, inflation linked cash flows they are seeking to support their accrued pension payment obligations.”

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