First projects transferred into BAM PPP and PGGM joint venture

(Press release BAM PPP and PGGM:) Bunnik/Zeist, the Netherlands, 8 December 2011 – Royal BAM Group and Dutch pension fund administrator PGGM announce the first transfer of existing PPP projects into their joint venture, BAM PPP PGGM Infrastructure Coöperatie U.A., formed earlier this year.

The successful transfer of three operational projects into the joint venture is the first of the anticipated twelve existing PPP projects from BAM PPP’s European portfolio. The projects are transferred with an equity value of around €45 million and a total project value of almost €300 million.

For BAM PPP this puts into action the strategy of Royal BAM Group for structured divestment to realise some of the underlying value in its portfolio of PPP projects. In addition it realises a recycling of funds in operational projects to support the active bidding programme, whilst permitting BAM to continue as a long-term partner to the projects. The transfer of 80 percent of these projects results in a book profit of more than €10 million for BAM. BAM will hold a 20 percent interest through the joint venture.

For PGGM these assets will immediately yield stable cash flows and further provide long-term inflation-linked returns both of which are attractive features for its clients. The revenues from the PPP projects are secured through long-term concession agreements with governments and are therefore considered to have a modest risk profile.
BAM PPP remains as the management services provider to the projects transferred, is the provider of asset management services to the joint venture and continues to represent the joint venture in its transactions.

The objective of the joint venture remains providing a long-term partnership to invest in the developing social and transport PPP markets in the Netherlands, Belgium, the United Kingdom, Ireland, Germany and Switzerland.
In conjunction with the ongoing transfer of existing PPP projects, the joint venture is currently actively bidding across these markets for new projects with a commitment of €240 million to such new projects.

About BAM PPP

BAM PPP is an operating company of Royal BAM Group, a worldwide construction services company generating revenues of approximately €7.7 billion and listed on Euronext Amsterdam. BAM PPP is responsible for Royal BAM Group’s involvement in the PPP market. Operating from offices in Bunnik, Birmingham, Brussels, Dublin, Frankfurt am Main and Glasgow, BAM PPP is active in the road, rail, education, healthcare, judicial and general accommodation sectors and is well positioned to access most Western European markets.

About PGGM

PGGM is a leading pension fund administrator with origins in the care and welfare sector. PGGM provides pension management, integrated asset management, management support and policy advice for pension funds. PGGM currently manages around EUR 105 billion of pension assets of 2.5 million participants. As a cooperative organisation, PGGM provides services for its 565,000 members that help them to secure a valuable future.

Further information:

BAM:

• BAM PPP: V. Harris, +44 (0)141 779 8634;
• Royal BAM Group – Press: A.C. Pronk, +31 (0)30 659 86 21;
• Royal BAM Group – Analysts: P. Snippe, +31 (0)30 659 87 07.

PGGM:

David Uitdenbogaard, Spokesman
E-mail: [email protected]
Telephone: +31 (0)30 277 97 35
www.pggm.nl