Poul Nyrup Rasmussen, head of the Party of European Socialists, exclusively told sister magazine PEI why he thinks private equity, real estate and infrastructure funds need bringing to heel.
The UK infrastructure group has been named preferred bidder for a £250m PPP to install and maintain some 33,000 street lights in Coventry, in the Midlands. The project is Balfour Beatty’s fourth street lighting contract in the UK.
New South Wales has scrapped a A$5.3 billion contract to build a metro link in Sydney, part of which was being procured as a PPP. The project is the second Australian PPP to collapse this year - following Lane Cove Tunnel - and the country’s fourth PPP to fall over the last decade.
Aviva, the world’s fifth-largest insurer, has joined the likes of AXA and Allianz in backing an infrastructure fund, through its partnership with Hadrian’s Wall Capital. The team plans to launch an infrastructure debt fund that could reach one billion, split equally between pounds and euros.
The fund and its toll road vehicle, Itinere, are analysing several opportunities in the US, Australia and other OECD countries with a view to making a toll road investment this year.
French rail agency RFF and a VINCI/AXA Private Equity-led consortium have finally reached financial close on the €1bn GSM-R rail communications PPP, after several months of delays. The deal is France’s first rail PPP but is unlikely to serve as a template for the other high-speed rail deals being managed by RFF.
The toll road operator says it has placed an expression of interest for Sydney’s A$1.6bn Lane Cove Tunnel, which was placed in receivership last month after its sponsor failed to pay interest on A$1.16 billion of outstanding debt.
The property group has mandated HSBC Mexico to act as fiduciary and help raise a $256m industrial fund focusing on investments in logistics platforms across Mexico City, Guadalajara and Monterrey. The new vehicle will target returns of between 13% and 16% and is expected to be fully invested in four years’ time.
The European Bank for Reconstruction and Development is waiting for final approval to lend €100m to the sponsors of Pulkovo airport – Russia’s first airport PPP, in St. Petersburg. Russian bank VTB is seeking commercial banks to participate in the project alongside other multilaterals.
Belgian transmission operator Elia is in talks with Australia’s Industry Funds Management regarding a joint bid for Vattenfall’s German grid. The consortium is reportedly considering bidding around €800m for the asset. Vattenfall reopened the auction for its grid in November after exclusive talks with a Goldman Sachs/Allianz/RREEF consortium broke down over price.
After several delays, France’s €1bn GSM-R rail communication PPP is set to reach financial close next week with between eight to ten commercial banks. The latest issue holding banks from writing the final cheque has been the need to get assurances regarding the status of the 15-year contract should rail agency RFF – a public company – be privatised in the future.
In a letter to the CEO of FINRA dated 18 December 2009, obtained by PEM, the director of the SEC's division of investment management said the SEC might create an exception to the ban for registered broker-dealers acting as legitimate placement agents, if FINRA can implement rules that would prohibit pay-to-play practices. Read the full text of the letter.
Caisse des Dépôts et Consignations has announced the creation of a unit dedicated to infrastructure investment – CDC Infrastructure. The new vehicle intends to acquire minority stakes in PPPs across the transport, energy and environmental sectors. CDC Infrastructure will mostly target brownfields and starts with a portfolio of nine holdings worth €600m.
The global private equity investor has changed hands for the second time in six years.
Ferrovial subsidiary Amey has sold a 50% stake in its PFI business – Amey Ventures – to DIF Infrastructure Fund II. The deal will give DIF equal ownership of 10 PFI projects but doesn’t include Amey’s beleaguered contract to upgrade London’s underground rail. Amey’s PFI portfolio is said to be worth over £300m.