Infracapital, M&G's European infrastructure investment team, has acquired an 80% stake in a €700 million (US$797.4 million) Italian public-private partnership (PPP) portfolio from Societa’ Italiana Per Condotte d’Acqua.

The portfolio comprises operational and greenfield assets in the health, transport and security sectors. It includes, among others, the following assets:

• Bolzano Prison PPP Project. The prison is located in south Bolzano south, near the airport. The facility has capacity for 220 inmates. The management phase includes the following services: ordinary and extraordinary maintenance; user management; canteen; laundry service; maid service; sports management; management of training activities and recreation.
• Milan health and research city PPP project. The project involves the development of a health center that will hold a cancer treatment center and a neurology health center. The new 705-bed facility will be developed on an area of 129,000 m². The 27 year concession contract has an estimated value of approximately €500 million.

The Vimercate hospital in the north of Milan is also included in the acquired portfolio.

According to sources, Andy Matthews, greenfield director at Infracapital, stated:

"The deal is indicative of the significant greenfield infrastructure investment opportunity in Italy and across Europe, where we hope to invest further in the coming years. It provided Infracapital with a high-quality platform of PPP projects in Italy."

Isabella Bruno Tolomei Frigerio, president and CFO at Ferfina, the holding company of Condotte, said: 

“We see significant growth potential in healthcare, transport and accommodation PPP throughout Italy.”