European private equity firm Allianz has purchased a 56 per cent stake in Colchester Garrison Private Finance Initiative (PFI) project, a government programme to modernise public infrastructure.
Allianz is investing in the project alongside the UK’s Pensions Infrastructure Platform (PIP) PPP Equity Fund, which is managed by Dalmore Capital and which will increase its shareholding in the project from 17 percent to 30 per cent.
The acquisition of the combined 69 per cent shareholding will be for a total consideration of £139m.
Allianz acquired the stake from two of InfraRed Capital Partner’s managed funds, HICL Infrastructure Company and InfraRed Infrastructure Yield Fund.
Allianz CIO Christian Fingerle said, “We are very pleased to be investing in the Colchester Garrison PFI project alongside a like-minded, long-term partner such as Dalmore Capital and PIP.
“We understand the importance of the Garrison to the Ministry of Defence and we will continue to ensure operational excellence and customer satisfaction.
“The stable and long-term nature of this project fits well to the investment strategy of Allianz and provides further diversification to our existing infrastructure portfolio.”
This project is a 35 year concession to design, build, finance and operate a new Garrison facility at Colchester, Essex for the UK Ministry of Defence.
Back in December the firm expanded its management board with Jurgen Gerke joining as its new CEO.
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