RBS seeking buyers for Australian PPP schools unit
Bloomberg has reported that Royal Bank of Scotland (RBS) is considering selling Axiom Education Victoria, a unit that manages eleven schools in the state of Victoria through a PPP contract.
According to the source, RBS is working with Rothschild on the sale and preliminary information has been sent to potential buyers.
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.
Axiom Education Victoria receives a quarterly fee from the state government and the contract due to last a further 22 years. The investment is expected to deliver an internal rate of return of up to 9% per annum, based on leverage of up to 90%.
Bloomberg said that local and offshore buyers are expected to join in the bidding for the portfolio of schools.
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