Dutch pension giant APG Asset Management, on behalf of its pension fund client ABP, has agreed to acquire an operational portfolio of seven high quality Public-Private Partnership (PPP) assets in the UK, including hospitals, primary care and community health and educational facilities (the Seed Portfolio), from HICL Infrastructure PLC, a London-listed infrastructure investment company managed by InfraRed Capital Partners. InfraRed Capital Partner is majority owned by Canadian insurer Sun Life Financial.
The c.£225 million Seed Portfolio will be acquired through a Separately Managed Account (SMA) with ABP as sole limited partner, managed by InfraRed. As part of the transaction, APG has established a partnership framework with HICL, enabling the SMA to consider future acquisitions in alignment with its investment strategy. The transaction strengthens ABP’s exposure to resilient core infrastructure assets and represents a first step toward executing its strategy to increase allocation to social infrastructure. The SMA has been established to provide APG with diversified exposure to social infrastructure investments across Europe. These assets are spread across health and education projects, including Southmead Hospital and Edinburgh Schools. Through this transaction, HICL has also agreed a partnership framework with APG that creates the scope for future mutually beneficial divestments, as well as for co-investments. This transaction enhances InfraRed and HICL’s valued relationship with APG, who will become a co-shareholder on several of HICL’s assets.
The mandate from APG is for 22 years and covers both core and core-plus infrastructure, with InfraRed responsible for managing all facets of the SMA over this period. InfraRed will draw heavily on its deep social infrastructure experience and extensive in-house investment, portfolio, and asset management capabilities, which span across the infrastructure risk spectrum. InfraRed made its first social infrastructure investment in 2003 and since then has made over 171 investments with 68 disposals
Completion of the transaction is expected by December 31, 2025 and is subject to customary third-party consents.
