MIP Disposes of its Social Infrastructure PPP Platform

Mubadala Infrastructure Partners (“MIP”), an emerging markets infrastructure fund manager, announced that it has completed the sale of its social infrastructure platform (“MIP Campus 1”) to Plutus Campus Holdings Limited who, for the purposes of this transaction, secured a profit sharing investment arrangement with a fund managed by the largest alternative asset manager in Korea, KDB Infrastructure Investments Asset Management Company (“KIAMCO”), with principal participation from Hana Financial Investment Company.

The social infrastructure platform was owned by MIP’s first fund which achieved final close in 2010, and consists of three operating Public Private Partnerships (“PPP”) university campuses in Abu Dhabi in the United Arab Emirates owned in partnership with Mubadala Investment Company (“Mubadala”). Mubadala will remain as a majority shareholder in the projects.

The social infrastructure platform includes the following three companies partially owned by MIP Campus1, was established to develop, finance and provide facilities management to the university campuses under build-own-operate-transfer (“BOOT”) agreements:

  • Al Maqsed Development Company PJSC (25% stake): Al Maqsed is the developer and operator of the new campus for Zayed University in the city of Abu Dhabi under a 25-year concession. The campus is a 75 hectares purpose built educational campus for 6,000 students including residential facilities for male and female students
  • Al Hikma Development Company PJSC (49% stake): Al Hikma is the developer and operator of the new United Arab Emirates University (“UAEU”) campus in the city of Al Ain under a 27-year concession. The campus has a total built-up area of 120 hectares including 54 buildings. The campus features world-class educational facilities, laboratories and sports complex for 18,000 students and residential units that can accommodate 2,500 students
  • Manhal Development Company PJSC (49% stake): Manhal is the developer and operator of the Paris- Sorbonne University-Abu Dhabi (“PSUAD”) campus in the city of Abu Dhabi under a 25-year concession. The campus is a 10 hectares purpose-built, and state-of-the-art facilities of a modern educational institution with capacity of 2,000 students including on-campus residences. PSUAD is the first French higher-education institution to open in the GCC region.

The PPP concessions are based on long-term take-or-pay, service and availability-based contracts with Government of Abu Dhabi related entities. Day-to-day facility management operations of the underlying assets are outsourced to the UK-based and FTSE-listed facility management specialist Serco and to Khadamat Facilities Management, a JV between Mubadala and Serco.

Philip K. Haddad, Managing Partner of MIP comments: “We are proud to having been part on behalf of our investors of the development and operations of the first higher-educational PPPs in the Middle East region. The uniqueness of these assets has made them attractive to high quality global institutional investors who are seeking operating infrastructure investment in the GCC. As we imminently raise our successor fund, MIP II, we will continue to focus on investing in differentiated businesses in the social infrastructure sector where we have developed strong expertise along with other key infrastructure sectors such as energy, transportation and water.”  MIP recently disposed of its investment in Abu Dhabi Ports Operating Company PJSC-Abu Dhabi Terminals.

Youngho Chung, Chief Executive officer of KIAMCO said: “This investment follows our strategy to fund high quality core infrastructure assets in the region and globally and fits perfectly with the needs and strategy of our long-term investors.”

Citi and Clifford Chance acted as financial and legal advisors, respectively, to MIP on this transaction. KPMG and Herbert Smith Freehills acted as financial and legal advisors to Plutus Campus Holdings Limited.

Mubadala Infrastructure Partners Limited

Mubadala Infrastructure Partners is an independent fund manager focusing on infrastructure investments in emerging markets. http://www.mip.ae

KDB Infrastructure Investments Asset Management Company (KIAMCO)

Established  in 2003 as a subsidiary  of the state-owned  Korea Development Bank, KIAMCO is the largest alternative  asset manager in Korea, with investments  in over 190 projects  (including highways,  power plants  and railways)  and total established  fund size of approximately  US$14.7 billion. http://www.kinfra.co.kr

Hana Financial Investment  Company

Hana was established in 1977 as Daehan Investment Trust and led the domestic capital market over the past four decades by forming the first fund  in Korea.  Hana  is one of the largest  bank  holding  companies  in  Korea  and boasts  solid relationship  with all major institutional  investors in the country.  https://www.hanaw.com