International Public Partnerships Limited, the listed infrastructure investment company, has acquired a further 3.33% interest in the Gold Coast Light Rail Project (Stages 1 and 2) from Aveng Group.

The follow-on investment in the project has arisen from shareholder rights to acquire proportionate shares from fellow consortium members who choose to dispose their interests.  The acquisition will increase INPP's total investment from 26.67% to 30%.

The company has been a long-standing shareholder in the project through the GoldLinQ Consortium alongside Plenary Group, Marubeni Group, Palisade and Keolis. 

Stage 1 of the Project delivered by the Queensland Government and GoldLinQ, saw the development of a AUD1.29 billion, 13km light rail system between Gold Coast University Hospital and Broadbeach.  It has been operational since July 2014.  

Stage 2, comprises a 7.3km extension from the Gold Coast University Hospital north to Helensvale which will link the light rail system to the State's heavy rail line and incorporate three additional stations. Construction completion of Stage 2 of the project is scheduled at the end of the 2017.

Key features of the project include:

• 13 year concession term ending in 2029 (to coincide with the original project term);
• Revenues linked to the availability of the asset and partially linked to Australian CPI; 
• Construction and operations risk fully passed down to McConnell Dowell (Stage 1) and CPB Contractors (Stage 2) as Design and Build Contractors and Keolis Downer EDI (O&M).
• Revenues contracted with the Queensland State Government;
• No refinancing risk;
• Robust financial structure in place with conservative gearing and senior debt provided for the term of the concession by BBVA, Intesa, KfW, EDC, BTMU and Mizuho.