Lovells has landed a role on a major Land Securities Trillium (LST) deal, advising on the launch of the £1.14bn infrastructure fund Trillium PPP Investment Partners.
Project finance partner Philip Brown led the team acting on the transaction, having been introduced to LST when it acquired his client Secondary Market Infrastructure Fund (SMIF) last year. SMIF had an investment portfolio of 81 PPP assets.
“LST took the PPP assets that came with the SMIF business and spun them out into this new vehicle, with debt and equity coming in to fund it,” said Brown. “LST will retain a 15 per cent interest in the fund.”
Half the fund’s value – £568m – is being offered as equity stakes, with the other half being made up of bank borrowings.
The debt, which has yet to be syndicated, is currently being held by Lloyds TSB and HBOS, which are being advised by Freshfields Bruckhaus Deringer partner Alex Carver.
The debt will be used to finance around 100 new investments for the fund over the next five years, with Lovells expecting to advise on the acquisitions.
According to Brown the equity stakes are particularly attractive to pension funds as the value of the investments is expected to be realised over a 20- to 30-year period.
So far the Victorian Funds Management Corporation of Australia – the pension fund for public sector workers in the Australian state of Victoria – has taken a stake, along with HBOS and Bank of Ireland.