3i Group plc has agreed to acquire a portfolio of assets from the EISER Global Infrastructure Fund, which include Belfast City Airport and East Surrey Pipelines. BCA is an airport in Northern Ireland that served 2.7 million passengers in 2015 while ESP is a gas transporter and electricity network operator in the UK. To finance the initial acquisition and provide capital for follow-on investments in the portfolio, 3i is launching a fund targeted at 700 million pounds. 3i will invest 36 million pounds in the fund alongside pension fund investors APG and ATP. Investors in the EISER Fund will be offered a chance to contribute to the fund.
3i Group plc (“3i”) announces that it has agreed to acquire a portfolio of assets from the EISER Global Infrastructure Fund (“EISER Fund”), including Belfast City Airport (“BCA”) and East Surrey Pipelines (“ESP”).
BCA is the airport closest to the centre of Northern Ireland’s capital and served 2.7 million passengers in 2015. ESP is the second largest independent gas transporter and the third largest independent electricity network operator in the UK. The portfolio also includes a stake in Herambiente, an Italian waste treatment and disposal company, as well as stakes in four concession companies in Spain: two operating shadow toll roads and two operating Madrid bus terminal interchanges.
A new vehicle managed by 3i will have commitments of c. GBP700 million available to fund the initial acquisition and to provide capital for a number of significant follow-on investments across the portfolio. 3i will invest c. GBP36 million in the new vehicle alongside pension fund investors APG and ATP.
The agreement entered into by 3i provides for existing investors in the EISER Fund to be offered an opportunity to participate in the new vehicle, so that they have the option to remain invested in the portfolio of assets or to realise liquidity from the portfolio transaction as the EISER Fund nears the end of its fund life.
This transaction extends 3i’s infrastructure activities and further demonstrates 3i’s ability to structure and execute complex infrastructure transactions for leading institutional investors.
Completion of the transaction is subject to certain conditions, including approval from the European Commission under the EU Merger Regulation.
About 3i Group
3i is an investment company with two complementary businesses, Private Equity and Infrastructure, specialising in core investment markets in Northern Europe and North America. For further information, please visit: www.3i.com
About 3i’s Infrastructure business
3i is a leading European infrastructure investor, with a track record of investing in infrastructure since 1987. The current team of approximately 30 investment professionals advises or manages a number of infrastructure investment vehicles, including 3i Infrastructure plc, 3i India Infrastructure Fund and two PPP-focused funds, BIIF and BEIF II.
About APG Asset Management
APG Asset Management is a Dutch pension fund asset manager in the Netherlands. For its pension fund clients and their 4.5 million active and retired participants from the public and private sectors representing over 30% of all collective pension schemes in the Netherlands, APG Asset Management N.V. manages pension assets of more than €437 billion as at the end of October 2016. For further information: www.apg.nl/en
About ATP’s Pensions & Investments
ATP’s Pensions & Investments manages pensions for approx. 5 million members. With total assets of €107bn (Q3 2016), ATP is the fourth largest pension fund in Europe. Over the past 20 years, ATP has generated a return of 9 per cent on average, and €1.9bn were disbursed to 974,700 pensioners in 2015.
EISER Finance Limited (“EISER”) is a multinational asset manager specializing in deploying and managing equity and debt instruments in the real assets class both in mature and emerging markets. EISER is headquartered in London, and has a representative office in Johannesburg, South Africa, which covers sub-Saharan developments.