International Public Partnerships Limited (LSE:INPP) announced that its wholly owned German rail subsidiary, BeNEX, has secured a new regional rail concession requiring approximately €26 million in additional investment between 2027 and 2031.
The Rhein-Ruhr-Express Teilnetz B (RRX-B) concession will expand BeNEX’s operations across North Rhine-Westphalia and Lower Saxony, covering up to 5.1 million train kilometres annually over a 15-year operating period.
Rail Network Expansion and Investment Returns
The concession will be operated through a wholly owned BeNEX subsidiary, with most of the €26 million investment expected towards the end of the 2027–2031 funding period.
Following the addition of RRX-B, BeNEX expects its annual operating network to exceed 80 million train kilometres, serving more than 160 million passengers annually, assuming other operations remain unchanged.
INPP anticipates an internal rate of return (IRR) in the low-to-mid teens from the investment, which it expects to exceed the return implied by repurchasing its own shares.
The company plans to finance the commitment through asset realisation proceeds and surplus operating cash. It may also temporarily use its corporate debt facility to manage differences in the timing of cash receipts.
Portfolio Investment and Asset Realisations
Since June 2023, INPP has completed or committed to asset realisations exceeding £440 million, representing approximately 17% of its portfolio. The company said all completed disposals were achieved at or above their latest published valuations.
Over the same period, INPP has made investment commitments exceeding £500 million, generating an average expected IRR above 11%, compared with the portfolio’s weighted average discount rate of 9.1%.
During 2026, INPP has announced approximately €72 million in additional BeNEX investment commitments, including the latest €26 million concession, with funding scheduled over the next five years.
BeNEX Operations and Transport Portfolio
INPP first invested in BeNEX in 2007 and acquired full ownership in 2019. The business subsequently expanded its German operations, including the acquisition of Abellio’s German rail activities in October 2024, supported by approximately €18 million of additional INPP investment.
According to the company, BeNEX’s operating network will have expanded fivefold since INPP’s initial investment following the addition of RRX-B.
Transport investments represented 23% of INPP’s portfolio by fair value at 30 June 2026. During 2025, the company’s transport assets supported more than 244.7 million passenger journeys and covered approximately 947.9 million train kilometres.
More About International Public Partnerships
International Public Partnerships Limited is a listed infrastructure investment company with holdings across essential infrastructure sectors, including transport. Its BeNEX subsidiary operates regional passenger rail services under concession agreements across Germany.
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