Dutch asset manager PGGM is investing up to 鈧�130m to buy a 50% stake in Royal BAM Group鈥檚 public-private partnership (PPP) projects arm.
PGGM has agreed to pay an initial 鈧�100m for the interest in BAM PPP followed by a 鈧�30m future performance-related payment, in a deal which extends an ongoing partnership between the companies.
BAM PPP runs a portfolio of 49 concession-based infrastructure projects in the UK, Ireland, the Netherlands, Belgium, Germany and Australia with a total value of 鈧�12.1bn.
The deal follows an between the 鈧�252bn pension asset manager PGGM and BAM last August, which saw the former increase its share in the 21 projects within BAM PPP PGGM Infrastructure Co枚peratie UA from 80% to 90%, representing an investment of 鈧�39m.
Kieron Meade, managing director, BAM PPP, said PGGM鈥檚 cash injection 鈥渨ill now help us unlock major opportunities in the new wave of PPPs emerging in selected global markets鈥�.
BAM has seen its revenues hit hard by the coronavirus crisis, registering an operating loss of 鈧�81.8m in the first nine months of 2020. After it was announced on Monday, BAM鈥檚 stock rose by 20%.
In August, PGGM investment manager Natasha Mol insisted, however, that the pension asset manager was not doing a deal with BAM in order to help it weather the crisis.
鈥淭his is a conscious choice to increase our investments in this type of assets,鈥� Mol said at the time. 鈥淭he long-term horizon and stable returns fit well with the demands of our client [healthcare pension fund] PFZW.鈥�
In response to a question from 麻豆映画 Real Assets, PGGM said it is planning to further increase its investments in infrastructure beyond its cooperation with BAM.
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