German group plans to build infrastructure projects across UK, Europe, Canada and Australia
German services group Bilfinger Berger has announced plans to raise £245m via a London float, to invest in a portfolio of up to 19 public private partnership projects.
The chosen schemes include road projects and social infrastructure across the UK, Europe, Canada and Australia, and are relatively low-risk from an investor perspective.
Spin-off company Bilfinger Berger Global Infrastructure (BBGI) will publish the fund’s prospectus in October, with a listing to follow in November 2011.
BBGI will be chaired by David Richardson, former financial director of Whitbread, and will operate as a closed-end investment company incorporated in Luxembourg.
The company has said it will target an initial dividend yield of 6%.
Roland Koch, chairman of the executive board of Bilfinger Berger, said he expected the fund to appeal to investors amid market jumpiness: “We believe that an infrastructure fund, especially in the current critical capital markets situation, is highly attractive for institutional investors thanks to its international reach, the creditworthiness of its project clients and its expected returns”.
The value of the portfolio will be independently verified by accountants PwC.