Land Securities Group PLC has today announced the first closing of Trillium PPP Investment Partners (Trillium Partners), the joint venture established to enable third party investors to gain exposure to Land Securities Trillium's Public Private Partnership contracts (including their Public Finance Initiative work).
Including the 15% equity stake which Land Securities Trillium intends to hold over the long term, Trillium Partners has now received firm commitments for 67% of the equity and remains on target to reach financial close by the end of March 2008. Together with the debt financing completed last month, Trillium Partners has now raised over 83% of its initial capital requirement of £1.136 bln (approx 1.47 bln.).
Equity partners who have joined the joint venture at first close alongside Land Securities Trillium are Halifax Bank of Scotland plc through its wholly owned subsidiary, Uberior Infrastructure Investments, Victorian Funds Management Corporation of Australia and funds from Bank of Ireland.
Trillium Partners is the largest investment vehicle of its kind focused on PPP contracts. With the successful first close achieved, Trillium Partners will start acquiring projects from Land Securities Trillium in early 2008.
Commenting on the success of the first close, Land Securities Chief Executive Francis Salway said: "The purchase of the Secondary Market Infrastructure Fund in February 2007 was the Company's largest ever acquisition and was made with the intention of establishing a joint venture to bring in third party investors alongside our own long-term investment. Reaching a successful first close in the prevailing credit market conditions is a real achievement and evidence of the strength of the PPP business we have built and the reputation of the Trillium management team."
Trillium Partners aims to grow progressively over the next five years to an invested value of nearly £2 bln. (apprx. 2.58 bln.) through the acquisition of mature operational PPP assets.
Source: Land Securities