AMP Capital will acquire $232 million of infrastructure assets that include six new schools in Adelaide.
The South Australian Schools Public Private Partnership is to be purchased by AMP Capital’s Community Infrastructure Fund and Core Infrastructure Fund plus other investors from Land Lease and Commonwealth Bank of Australia.
The schools include primary, middle, secondary, special education and child-care centres. AMP Capital will manage the upkeep of the schools through a third party service provider. AMP’s investors are paid a regular fee over 27 years if the school’s grounds and buildings are maintained and operated properly.
“This transaction is expected to deliver double digit returns across the projects’ 27-year concession period,” says AMP Capital head of infrastructure Australia and New Zealand, Paul Foster, in a statement.
Foster says government are letting investors fund social infrastructure assets in part because of a reduced tax base.
“This is creating good opportunities for our clients,” he says.