RBS close to sell PPP projects in Australia
RBS, which is about 81 per cent-owned by the UK government, is embarking on a global asset sell-off as it focuses on its UK lending business. As part of this strategy, the bank is looking for buyers for the PPP projects still in its Australian portfolio.
Shortlist for Partnerships Victoria in Schools Project
Sources announced on Friday that overseas investment funds InfraRed Capital Partners, John Laing Infrastructure Fund and Morrison & Co have been shortlisted for the sale of Royal Bank of Scotland's public private partnership, Axiom Education Victoria.
The project was funded and managed as a Public Private Partnership (PPP) with the Victorian State Government, where the State entered into a contract with Axiom Education Victoria for the design, construction, financing and maintenance of eleven new government schools scattered across Melbourne's greater metropolitan area. Axiom Education Victoria is formed by Abigroup (Lend Lease) and Royal Bank of Scotland. The project investment was $255 million.
The sale process was reported in July by Bloomberg.
Rothschild is running the sales process for RBS. The parties are hoping to wrap up a deal before Christmas.
Sale of Sydney's Royal North Shore hospital
According to local sources in Australia, Royal Bank of Scotland has appointed Goldman Sachs to assess the sale and refinancing options for Sydney's Royal North Shore hospital PPP project.
Royal Bank of Scotland bought the PPP project in 2007 from ABN AMRO, just before the global financial crisis hit, when debt was cheap. According to sources the asset is highly leveraged and any drop in debt pricing could wipe RBS' equity holding.It is understood that a sale is RBS' preference, but a formal sales process would be unlikely to kick off until after Christmas.Buyers could include local infrastructure fund managers, AMP Capital and IFM Investors; pension funds such as Aussie Super and MTAA Super; foreign infrastructure investors such as UK-based InfraRed Capital Partners and John Laing Infrastructure Fund, New Zealand-based infrastructure investor Morrison & Co and Canadian pension fund manager Caisse de dépôt et placement du Québec (CDPQ).
Sources say that RBS might ask the NSW government for a series of contract changes to make the asset more attractive. The NSW government is understood to have engaged Lazard for general advice on a potential sale.
RBS sold the rest of its PPP business in Australia two years ago.
Country news
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