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Balfour Beatty reaches £200m close on infra fund

Construction giant raises £200 million to invest in existing transport, energy and utilities assets, two years after announcing fund.

Balfour Beatty has reached first close on its first infrastructure fund, raising £200 million.

The fund will invest in operational assets, rather than new build, in major sectors such as transport, energy and utilities across the UK, Europe and North America.

The fund was originally announced at the end of 2010, when the company said it plans to raise £500m to £750m in the long term, with the first close planned for 2011.

Balfour Beatty launched the funds management business, Balfour Beatty Infrastructure Partners (BBIP), in 2011, when it recruited four senior individuals, headed by Rob Gregor, formerly head of European infrastructure.

The contractor has invested £70m of its own money in the fund. It expects further close throughout 2013, and is aiming to reduce its share to 10 per cent.

It said: “Drawdowns will be dependent on the timing of investments by the fund, but it is anticipated that Balfour Beatty’s commitment will be invested over the next 3-4 years.”

Balfour said it was using its skills, experience and asset knowledge, in particular from its infrastructure investments division and US business Parsons Brinkerhoff.

The fund managers have been “obtaining the relevant registrations, establishing a presence in London and New York, identifying investors and pursuing the appropriate initial assets for the fund to invest in”. 

Balfour Beatty also said in 2010 that it will be looking to sell £200m to £300m of PPP assets.

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