AMP Capital join forces with South Australian Schools

AMP Capital will manage assets for the South Australian Schools Public Private Partnership (PPP) project after the South Australian Government approved AMP Capital's acquisition of the project on behalf of its funds and clients.

AMP Capital's Community Infrastructure Fund and Core Infrastructure Fund are among the funds investing in the project, which AMP Capital's head of infrastructure for Australia and New Zealand Paul Foster said was worth $232 million.

AMP Capital has acquired four additional social infrastructure projects since taking over management of the Community Infrastructure Fund in September 2010.

As the Government reduces its tax base, it will look increasingly to the private sector to fund critical economic and social infrastructure assets, according to Foster.

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"In addition, a significant number of assets are now coming into the secondary market from developers looking to exit assets following the construction phase and recycle capital for new projects," he said.

Foster said social infrastructure and secondary market opportunities were creating good investment opportunities for many of the company's superannuation clients.

Foster said 100 per cent of the equity for the project will be sourced through Lend Lease and Commonwealth Bank of Australia, and double-digit returns for clients are expected across the remaining 27-year concession period.

AMP Capital's latest infrastructure project includes six newly constructed schools.