International Public Partnerships (LSE:INPP) has agreed to sell its stakes in nine UK private-public partnership (PPP) projects to a special managed account run by InfraRed Capital Partners on behalf of a pension fund.
The projects comprise fifteen schools across four London boroughs, delivered under the Building Schools for the Future programme.
Gross proceeds at completion are expected to exceed £58 million, a premium to the listed infrastructure investor's last published valuation of the assets. The sale extends INPP's capital recycling drive, freeing proceeds from mature holdings to fund higher-returning investments and share buybacks.
Including this deal, the company will have realised over £440 million over the past three years, roughly 17% of its portfolio, with every disposal completed at or above published valuations. Over the same period INPP has committed roughly £480 million to reinvestment at a blended internal rate of return above 11%, ahead of the portfolio's weighted average discount rate of 9.1%.
"The disposal of the PPP projects at a premium provides further validation of INPP's high-quality assets and the inherent value embedded in the existing portfolio", said Sarah Whitney, the company's chair.
She added that proceeds, alongside internal cash flows, are being redeployed into assets that are accretive to overall returns.
