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PiP to acquire portfolio of UK public-private partnership interests

The Pensions Infrastructure Platform (PiP) is to acquire a portfolio of interests in ten UK public-private partnership projects for just over GBP400 million from Aberdeen UK Infrastructure Partners (Aberdeen). PiP will manage the interests directly.

The acquisition, by the PiP Multi-Strategy Infrastructure Fund (MSIF), includes hospitals, highways operations and maintenance contracts, energy from waste projects and social housing.
Over the last 18 months PiP has acquired 2 infrastructure debt portfolios, a portfolio of 31 onshore wind turbines, a portfolio of six solar energy parks, a stake in a ferry company and now 10 social infrastructure assets, bringing all of them into the direct ownership of UK pension schemes.
PiP has now exceeded its initial funding objective by securing almost GBP750 million of investment from seven pension schemes, and has an experienced investment, asset management and operational team in place.
PiP invests for the long-term on behalf of pension schemes and their members. It owns and manages assets capable of providing 20-30 years or more of inflation linked cash flows to help schemes meet their long-term pension payment obligations. It will continue to build on these investments to deliver a diversified portfolio of UK infrastructure assets for pension schemes and their members.
Mike Weston (pictured), Chief Executive of PiP says: “These projects deliver vital facilities from which essential public services are provided to many thousands of people in England and Scotland. We are looking forward to working closely with the public-sector owners over the next 20-30 years to ensure these facilities are maintained and operated to the highest possible standards.”
“This transaction is a milestone for PiP, taking us close to GBP750m of assets under management just 18 months after the launch of our first fund. It demonstrates that it is possible for a group of UK pension schemes to collaborate to make long-term investments in infrastructure. Our buy and hold investment strategy, together with our cost efficient and responsible approach to asset management, ensures that maximum value is delivered to pension scheme investors and their members. As PiP continues to grow even more benefits will be secured for them.”

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