PGGM and BAM: joint venture grows to €600 million

15 February 2015 08:38

Zeist/Bunnik, 13 February 2015 - PGGM again commits capital to the joint venture with BAM PPP focused on PPP projects in the Netherlands and a number of north-western European countries. Both partners expect that further projects will be able to be added to the portfolio in 2015.

Pension investor PGGM has decided to increase its commitment to the BAM PPP PGGM Infrastructure Coöperatie U.A. by EUR 140 million. This brings the total capital PGGM has committed to the joint venture to EUR 480 million. The total capital committed to the extremely successful joint venture, which has now invested in 21 projects in north-western Europe, now totals EUR 600 million.

The cooperation with BAM PPP is now the largest infrastructure investment within PGGM Vermogensbeheer. PGGM Infrastructure has a total of EUR 4.6 billion invested. The joint venture has been awarded seven projects over the past twelve months. These include tram projects, motorway projects, government buildings, schools and a hospital in the Netherlands, Germany, Belgium and Ireland.

The joint venture has now invested in six Dutch projects. These include the buildings of the Supreme Court and ministries of Foreign Affairs and Infrastructure and the Environment both in The Hague and the A59, A12 and N33 motorways. The Dutch projects total almost EUR 1 billion of capital expenditure.

In the cooperation, international construction services group BAM’s expertise is combined with PGGM’s experience as long-term investor. Through the process the two parties contribute to strengthening the European economic structure. For PGGM, the joint venture is an important instrument as an institutional investor to fulfil its desire to invest more private capital in Europe’s infrastructure.

Frank Roeters van Lennep, Head of PGGM Infrastructure: ‘The joint venture enables BAM and PGGM to together invest in a diversified portfolio of European PPP projects, with the revenue coming from European governments. This is an extremely efficient means of being able to invest for our clients, at low costs and with a great deal of control of what happens with the money.’

BAM PPP retains full responsibility for bid management for new projects and the provision of asset management services to the joint venture and will represent the joint venture in its transactions. PGGM is a supportive investor generally providing 80 percent of the required capital for projects. The board of the joint venture is formed on an equal basis between the parties.