3i Infrastructure has sold all of its UK PPP investments and is considering doing the same for its European availability-based operational projects, as it looks to focus on higher yielding brownfield assets.
The London-listed fund said on Friday (6 December) that it has sold stakes in 18 PPPs and one OFTO project in the UK for GBP 194m. The buyers are Dalmore Capital – which now owns over 140 PPPs in the UK following its joint takeover of JLIF with Equitix last year – and also Semperian and Innisfree.
The 3i fund also said that it is considering selling its six European PPPs in the Netherlands and France. They include investments in the A9, A12 and A27/A1 roads and the National Military Museum in the Netherlands, and the La Sante prison and Condorcet university projects in France.
Earlier this month, 3i Infrastructure plc sold its original GBP 15m investment in Dalmore Capital’s first fund – Dalmore Capital Fund (DCF) – to a consortium of Scottish government pension funds, further underlining its commitment to move away from the PPP sector.
A spokesperson for 3i said the fund wants to focus on investing in infrastructure businesses rather than operational PPPs as they provide better returns. The spokesperson added the fund might consider new construction-phase PPP investments if they provide adequate returns.