Bilfinger Berger Global Infrastructure adds prison to seed portfolio

The recently-launched Bilfinger Berger Global Infrastructure (BBGI) trust has added an Australian prison to its seed portfolio.

The Luxembourg-incorporated investment company started trading on the London Stock Exchange on December 21 and has since taken on 19 public-private partnership/private finance initiative (PFI) projects from parent company Bilfinger Berger, a German multi-service firm.

Ahead of launch, the trust was given a three-star rating by Bestinvest because of its ready access to infrastructure projects through a pipeline deal with its parent company.

At the start of March, the trust acquired its largest single asset – Victoria Prisons – from Bilfinger Berger Project Investments. Costing about £35.9m, the two prison facilities in the project make up 17.4% of the portfolio.

Justice is the trust’s second biggest sector allocation – being completed by Germany’s Burg Prison – and takes up 20.8% of the portfolio.

Transport is the largest sector weighting at 41.6%, with education accounting for 18.3%, health making up 15.1% and the remaining 4.3% being split between fire stations in Staffordshire and Unna Administrative Centre in Germany.

Frank Schramm, co-chief executive of BBGI, says: “Our seed portfolio contains a well-diversified mixture of social infrastructure projects and road projects.”

Some 41.4% of the portfolio is allocated to the UK through assets such as a section of the M80 motorway, seven schools, three hospitals and the Staffordshire fire stations.

However, the majority of the portfolio is held in infrastructure projects housed outside of the UK. Australia and Canada, with each accounting for 26.9% of the portfolio, while Germany makes up 4.8%.

Duncan Ball, co-chief executive of BBGI, says: “While there’s been a very strong PFI market in the UK, we’re a little more international and less focused on the UK.

“We like the UK market but, just by the virtue of the business Bilfinger has been in, we have access to assets in Australia and Canada.”