BAM and PGGM further strengthen joint venture

PGGM is increasing its commitment to BAM PPP PGGM Infrastructure Coöperatie U.A. by €140 million. This brings the PGGM committed funding to €620 million and the total joint venture committed funding to €775 million. Of this amount €489 million has been invested and allocated to nearly 30 projects to date. In the Netherlands the joint venture has invested in seven PPP projects. It is the intention of both parties to herewith continue to grow the joint venture.

This increase is a result of a successful 2015 and the joint venture continuing to achieve the expectations of both clients and the joint venture partners. Firstly by effectively cementing the developer / pension investor partnership in a short and highly efficient equity investment value chain which allows the joint venture to focus on maximizing the proposition for the client while maintaining an acceptable return for all parties involved and secondly by continuing to work at providing the most advantageous offers to clients by implementing initiatives for the streamlining of the bid process and all associated bidding costs.

There remains a positive pipeline of PPP project opportunities going forward and the objective of the joint venture remains to provide 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.

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.

About BAM PPP

BAM PPP is an operating company of Royal BAM Group, a worldwide construction services company generating revenues of approximately €7.4 billion and listed on NYSE 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 cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. PGGM has €183.3 billion in assets under management. The PGGM cooperative has approximately 700,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops innovative future provisions by linking together pension, care, housing and work.

Further information:

BAM:

• BAM PPP: V. Harris, +44 (0)141 779 86 34;
• Royal BAM Group - Press: A.C. Pronk, +31 (0)30 659 86 23;
• Royal BAM Group - Analysts: Joost van Galen, +31 (0)30 659 87 07.

 PGGM:

• Maurice Wilbrink, spokesman,+31 (0)30 277 15 00, maurice.wilbrink@pggm.nl