IPM has signed an Investment Advisory Agreement with KDB Infrastructure Investments Asset Management Co. Ltd. (“KIAMCO”) of Korea in respect a c.EUR60m equity investment in the Gaziantep Healthcare PPP project in Turkey.
The Gaziantep Healthcare PPP is a 1,875 bed hospital project in south-eastern Turkey, the largest in the region and the 4th largest in the country, being developed by an international sponsor consortium consisting of Samsung C&T of Korea, Salini Impregilio of Italy, and Kayi Insaat of Turkey, under a 25-year Public Private Partnership model with Turkey’s Ministry of Health.
KIAMCO will invest in the project from two of its investment funds in Korea, the KIAMCO Global Infrastructure Fund No. 3 and KIAMCO Turkey Gaziantep Hospital Fund, via a tax-efficient, asset-specific investment vehicle established by IPM and its onshore Turkey partners, Actus Asset Management. The investment vehicle represents one of IPM’s “first of its kind” transactions, using the Private Equity Investment Fund (“PEIF”) initiative introduced by Turkey’s Capital Markets Board in 2014, and the first time such a vehicle shall be used to invest in Turkey’s infrastructure. The KIAMCO funds’ investment benefits further from political risk insurance provided by the Multilateral Investment Guarantee Agency (“MIGA”, part of the World Bank Group).
The investment follows years of work carried out by the IPM team since IPM’s inception with Samsung Life Insurance, one of the KIAMCO fund’s main investors, and the project’s sponsor consortium and their advisors to structure the transaction and prepare the project for investment, debt financing and construction.