Intl Public encouraged by pipeline of PFI opportunities

Infrastructure investor International Public Partnerships (INPP) said its portfolio of assets continues to perform in line with expectations and with high levels of satisfaction from public sector clients.

The market for infrastructure continues to receive high levels of interest from both retail and institutional investors as they recognise the benefits of the asset class, INPP said.

As at November 14th, the portfolio comprised economic interests in 122 projects, of which 107 were in the UK, seven were in Australia, two apiece were in Canada and Germany while Belgium, Ireland, France and Italy all weighed in with one project each.

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The group sees no sign of waning enthusiasm on the part of governments for the participation of private sector involvement in public infrastructure projects. In the UK, the government is keen to persuade pension funds to participate in the provision of infrastructure schemes while there are also a number of investment opportunities in Australia and Europe, mainly in the regulated asset, transmission, education, transportation and health sectors which has piqued the interest of the fund's investment advisor.

There continues to be a limited number of new start "greenfield" project opportunities in the UK and other markets, however, which limits the opportunity to invest in new construction phase assets. Nevertheless, the nature and number of current opportunities with respect to operational assets, such as offshore wind farms, make up for this, in the company's view. As a result, however, the company expects construction project will form a smaller proportion of the portfolio in the short to medium term than in prior periods.

Overall, the company continues to remain positive about its prospects for the remainder of 2012 and into 2013.

JH