International Public Partnerships (LSE:INPP) has agreed to dispose of its interests in nine UK public-private partnership projects covering 15 schools across four London boroughs, continuing its strategy of recycling capital from mature infrastructure investments.
The assets, which form part of the Building Schools for the Future programme, are being sold to a separately managed account managed by InfraRed Capital Partners on behalf of a pension fund. INPP expects the transaction to generate gross proceeds of more than £58 million.
Importantly for shareholders, the disposal has been agreed at a premium to INPP’s most recently published valuation of the investments. The pricing provides further evidence of the underlying value within the company’s infrastructure portfolio and its ability to realise mature assets at attractive levels.
The latest transaction takes INPP’s total realisations over the past three years to more than £440 million, representing approximately 17% of its portfolio. All of these disposals have been completed at or above the corresponding published valuations.
Alongside these sales, INPP has committed to reinvest approximately £480 million over the same period. These investments have a combined internal rate of return above the portfolio discount rate, supporting the company’s objective of recycling capital into opportunities capable of generating accretive long-term returns.
The strategy allows INPP to monetise established investments while redeploying proceeds into new infrastructure opportunities offering potentially stronger risk-adjusted returns. Management believes the combination of successful disposals and disciplined reinvestment demonstrates both the quality of the existing portfolio and the effectiveness of its capital allocation approach.
INPP’s broader investment outlook is supported by its debt-free balance sheet and improving cash generation, while a relatively low price-to-earnings multiple and high dividend yield provide additional valuation support. Earnings have, however, varied between reporting periods. Technical indicators also suggest the shares are currently overbought following an upward trend, potentially increasing the risk of shorter-term volatility.
More About International Public Partnerships
International Public Partnerships Limited is a listed infrastructure investment company focused on public infrastructure assets and businesses designed to meet long-term societal and environmental requirements.
Its diversified portfolio includes more than 130 investments spanning utility and energy transmission infrastructure, transport, education, healthcare, justice and digital infrastructure.
INPP has investments across the UK, Europe, Australia, New Zealand and North America. Its strategy is centred on generating sustainable long-term income and capital growth for shareholders while investing in infrastructure that provides essential public services.
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