BBGI Global Infrastructure shares were up 0.8% to 165.3p in early afternoon trading on Monday following the group’s reported acquisition of a 49% equity interest in limited partnership Via Solutions Nord GmbH & Co. KG.
The interest is based in Germany, and is the project company for the A7 motorway private partnership between Hamburg and Bordesholm.
BBGI confirmed that the asset was availability-based, according to the company’s investment policy. The group currently has a 99% operational investment portfolio, with all investments availability-based and supported by public sector-backed contracted revenues.
The firm added that its portfolio assets are supported with inflation-protection characteristics which are paid as long as the assets are available for use.
“We are delighted to announce the acquisition of this high-quality, availability-based infrastructure investment,” said BBGI co-CEO Frank Schramm.
“Our strategy is to remain disciplined and selective in our approach to acquisition opportunities by only investing in availability-based assets that also align with our ESG principles, and not in higher risk infrastructure asset classes.”
BBGI noted that the purchase price was confidential, however the investment was expected to rank in the group’s top six to ten investments.
The firm is set to fund the investment through its £230 million corporate revolving credit facility and existing cash resources.
BBGI said availability payments would be received from the Federal Republic of Germany, represented by DEGES and rated AAA/Aaa by S&P and Moody’s, respectively.
The project reportedly includes expansions and upgrades to critical sections of the A7 motorway and consists of the efforts involved in the 65 kilometre widening from four to six lanes of a part of the motorway between Bordesholm and Hamburg.
The project includes 11 interchanges, six parking facilities, four rest areas, 79 civil engineering structures, 100,000 metres squared in noise barriers and a 550 metre noise enclosure tunnel.
Construction was reportedly completed in December 2019 and the concession is scheduled to run until 2044.
The A7 motorway is set to join the company’s existing German assets, including Burg Prison, 4 Schools in Frankfurt, Rodenkirchen Comprehensive School, Fürst-Wrede Military Base, P1 Schools in Cologne and the Unna Administration Centre.
“Our 56th availability-based infrastructure investment is our first road project in Germany and a great addition to our existing six projects in the country, further strengthening our Continental Europe exposure,” said BBGI co-CEO Duncan Ball.