AMP Capital has obtained South Australian Government approval to acquire the South Australian Schools Public Private Partnership (PPP) project on behalf of a number of its funds and clients, including AMP Capital’s Community Infrastructure Fund and Core Infrastructure Fund.


AMP Capital Head of Infrastructure Australia and New Zealand Paul Foster said the project has an enterprise value of $232 million.


The project includes six newly constructed schools in Adelaide, ranging from primary, middle, secondary, special education schools and child care centres.


Mr Foster said this acquisition gives AMP Capital managed funds and client’s access to a PPP asset providing availability-based revenue backed by the AAA rated South Australian Government.


“This transaction was sourced through a non-competitive, direct negotiation process and is expected to deliver attractive, double digit investment returns to our clients across the project's remaining 27 year concession period,” he said.


Funds and clients managed by AMP Capital are acquiring 100 per cent of the equity in the project from Lend Lease and Commonwealth Bank of Australia. In addition, AMP Capital is becoming the asset manager of the project.


“This latest deal demonstrates that AMP Capital managed funds and clients are well placed to benefit from the strong flow of opportunities we are currently seeing within the social infrastructure sector. It also reinforces AMP Capital’s strong, ongoing commitment to the Australian PPP market,” he said.


Mr Foster said as governments grapple with a reduced tax base, they are increasingly turning to the private sector to fund the development and delivery of critical economic and social infrastructure assets.


“In addition, a significant number of assets are now coming onto the secondary market from developers looking to exit assets following the construction phase and recycle capital for new projects.


“This is creating good investment opportunities for our clients, many of whom are superannuation funds who are the natural long term owners of these assets,” he said.


Since acquiring management of the AMP Capital Community Infrastructure Fund in September 2010, AMP Capital has acquired four additional social infrastructure assets bringing the total number of assets in the portfolio to eight.