22 December 2006
STAR Capital Partners and co-Investors announce
the sale of their investment in secondary market infrastructure
STAR Capital Partners (“STAR“), the
independent investment fund manager and its co-investors, Halifax
Bank of Scotland (“HBOS”) and AMP Capital Investors
(“AMP”) (“the Institutions”) have today
announced that they have signed agreements to sell their investment
in Secondary Market Infrastructure Fund (“SMIF” or ”the
Company“) to Land Securities Trillium (“LST”).
The enterprise value at completion is estimated at £927 million.
SMIF is one of Europe’s largest infrastructure investment
and management groups with total gross assets under management of
circa £4 billion.
SMIF was set up in 2001 and acquired by STAR in
December 2003. The objective was to grow the portfolio by acquiring
further PFI investments, establish a liquid secondary market in
the asset class, become the largest and most efficient manager in
the sector and acquire other infrastructure assets with similar
characteristics. The SMIF team have exceeded the business objectives
and today SMIF’s portfolio comprises 79 projects spread across
six main sectors: health, education, accommodation, prisons/secure
accommodation, transport and utilities and include, inter alia,
the British Embassy in Berlin and the M40 Motorway. In addition,
SMIF has established an asset management division, which monitors
and manages the portfolio for the long term. SMIF now has 89 personnel
employed in these core activities and is well positioned for further
In order to fund the acquisition growth, HBOS
and AMP joined STAR as co-investment partners during 2005.
Commenting on the agreed disposal:
Tony Mallin, Chief Executive
of STAR said::
“The business plan for SMIF was ambitious but built upon a
stable asset base with good macro growth dynamics in line with STAR’s
investment strategy. It is a credit to Bill Doughty and his team
that the plan was executed with such skill and precision. We are
delighted to have been part of the SMIF success and we wish Bill
and his team well under the new owner”.
Bill Doughty, Chief
Executive of SMIF added:
“STAR, HBOS and AMP have been committed investors during SMIF’s
development and growth over the last three years. Their support
and advice has added significant value to the business and contributed
greatly to the positioning of SMIF at the frontier of the PPP market.
Along with the rest of the SMIF management team, I am delighted
at the prospect of working with LST in the future and making a significant
contribution to its exciting and broader PPP strategy."