LONDON (Alliance News) - International Public Partnerships Ltd on Monday said it has invested a further USD32.0 million into the US military housing sector.
The infrastructure project investor said it invested the funds into interest-bearing subordinated debt instruments. The interests are underpinned by security over seven operational public private partnership military housing projects, which encompass a total of 19 operational military bases in the US.
The debt has a 36-year tenor and matured in 2052, INPP said.
The company added that the opportunity meets its investment criteria, in that military housing projects offer a secure revenue stream via the US military's 'Basic Allowance for Housing' paid to service personnel which creates an indirectly government sourced revenue payment. The sector also provides high barriers to entry, no residual value exposure and a geographically diverse portfolio of housing units.
INPP said the opportunity was sourced through its investment adviser Amber Fund Management Ltd's relationship with Hunt Companies Inc, which is one of the largest owners, managers and providers of ongoing services in the military housing sector.
The investment was funded through a combination of INPP's cash reserves and its corporate debt facility. The company said it has around GBP161.6 million of uncommitted credit available under its GBP300.0 million revolving credit facility.
"Our second transaction in the US marks the measured diversification of our portfolio into the P3 military housing sector and further demonstrates the added value that Amber's relationship with Hunt provides investors in INPP. We look forward to building on this success by developing additional primary pipeline opportunities in the US over the medium term," said Chairman Rupert Dorey.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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International Public Partnerships (INPP)