Royal BAM Group and Dutch pension fund administrator PGGM announce an increased commitment to their joint venture.
BAM and PGGM in discussion to extend their PPP partnership
Zeist / Bunnik, the Netherlands – The parties aim to continue their strong track record and explore opportunities to extend their partnership outside BAM’s European home markets to benefit from growth in the global PPP market.
This extended partnership would combine and leverage upon the capabilities of BAM as a proven developer and manager of PPP concessions with the skills and investment capacity of PGGM as a major long-term investor. Parties aim to finalise these discussions in the second half of this year.
A first step in the partnership extension was recently effected on 30 June 2020 when PGGM increased its share in 21 projects that are currently within the BAM PPP-PGGM joint venture (from 80% to 90%). This provides PGGM with an immediate increase in their investment volume and BAM with the opportunity to realise value from the current BAM PPP investment portfolio. This transaction will have a positive impact of approximately €14 million on BAM’s adjusted result before tax in the first half of the year, which was already included in BAM’s trading update on 2 July 2020.
In 2011, PGGM and BAM formed a joint venture, BAM PPP PGGM Infrastructure Coöperatie U.A., to jointly target PPP project opportunities in BAM’s home markets. Since then, this joint venture has been highly successful growing the portfolio.
Erik van de Brake, Head of Infrastructure PGGM: ‘It is recognised on the back of this success that the joint venture's current level of committed capital will soon be reached. PGGM as well as BAM, express an interest to further extend the partnership. By leveraging the synergies, expertise, skills and global networks of both organisations PGGM and BAM form a unique combination, with the capability to continue their strong track record and fulfil joint growth aspirations.’
Frans den Houter, CFO / interim CEO Royal BAM Group: ‘For BAM it is an exciting prospect to continue and even extend our strong partnership with PGGM. This allows us to leverage experience we have built up over the last 20 years in developing and managing PPP projects in combination with our technical skills. Our participation in new markets will focus on the developer and investor role. Involvement in construction activities will only be considered in our home markets, where projects fit within our identified product market combinations and core technical competencies.’
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On June 30, 2020 PGGM had EUR 246 billion in assets under management and was administrating pensions of 4.4 million participants. Around 750,000 workers in the Dutch healthcare are connected to PGGM&CO, our members organization. Either alone or together with strategic partners, PGGM develops future solutions by linking together pension, care, housing and work. www.pggm.nl
About BAM PPP
BAM PPP is responsible for Royal BAM Group’s involvement in public private partnership (PPP) projects. BAM PPP operates in five key European markets (Netherlands, Belgium, UK, Ireland and Germany) and in selected International markets, in addition to exploring broader project finance investment opportunities. BAM PPP’s sector expertise includes roads, rail, education, health, justice, marine and general accommodation. BAM PPP has reached financial close on 49 projects, with a total capital value of over €12.1 billion. www.bamppp.com
Bunnik / Zeist, the Netherlands, Royal BAM Group and Dutch pension fund service provider PGGM have reached conditional agreement on the key terms for the extension of the current partnership between PGGM Infrastructure Fund and BAM PPP.
Bunnik/Zeist - The transaction between Royal BAM Group and PGGM Infrastructure Fund announced on 23 November 2020 has been completed.
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