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The Irish Infrastructure Fund (IIF), managed by Irish Life Investment Managers and AMP Capital, has established Valley Healthcare, a new investment vehicle that will invest in primary care centres in Ireland.
The primary care centres held under Valley Healthcare will be managed by Glencar Healthcare.
Primary care centres provide outpatient care to local communities, offering patients a full range of non-critical healthcare and social services and reducing pressure on full-service hospitals within the Irish healthcare system. The provision of healthcare through the primary care network has been identified as a key component of the Irish Government’s national healthcare strategy.
Valley Healthcare’s first acquisitions are two operational centres in Wicklow and Mayo, providing immediate cashflow for the vehicle. The primary care centres operate on a 25-year lease from the Health Service Executive, the Irish government body responsible for providing health and social services. Valley Healthcare is expected to add further primary care centres to its portfolio over time.
AMP Capital, on behalf of IIF, will provide its expertise in infrastructure asset management and origination, as well as capital to acquire and/or build the primary care centres. The centres will be managed by Glencar, who have a proven track record in delivering public healthcare services across Ireland.
AMP Capital’s Philip Doyle, Principal of the Irish Infrastructure Fund, said: “AMP Capital is delighted to develop this unique partnership with Glencar on behalf of the Irish Infrastructure Fund.”
“At a time when demographics are shifting towards an ageing population, we see a real opportunity for private sector investment to play a key role in further developing healthcare in Ireland. By partnering with Glencar, which is well known in Ireland for its expertise in healthcare management, we believe we are in a unique competitive position to provide high-quality essential healthcare services to communities across Ireland while also delivering strong returns for IIF investors.”
Patrick Burke, Managing Director, Irish Life Investment Managers, said: “The Irish Infrastructure Fund provides institutional investors with a unique opportunity to invest in a portfolio of infrastructure assets which underpin the Irish economy. The fund aims to provide investors with stable returns, from a combination of income yield and capital growth making it particularly attractive for defined benefit pension schemes. Valley Healthcare provides the fund with further sector diversification and establishes a presence for the fund within the Irish healthcare infrastructure market.”
Prof Brendan Drumm, Chairman of Glencar Healthcare said: "Health services across the world are transforming the way care is provided to ensure that many services which in the past required an individual to be admitted to hospital can in future be provided to them in comprehensively equipped multidisciplinary primary care centres. Major investment in new infrastructure is required to support this change. Private investment in public health service infrastructure, such as that being undertaken by IIF, greatly enhances the speed at which this essential infrastructure is established."
The acquisition of the primary care centres in Wicklow and Mayo is being funded by 100 per cent equity initially, with the option to add debt at a later stage.
About AMP Capital
AMP Capital is a specialist investment manager with more than A$165 billion in funds under management
as of 31 December 2016 and more than 250 investment professionals. AMP Capital has a heritage and
strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset
solutions. It is a subsidiary of AMP Limited, which was established in 1849, and is one of Australia's
largest retail and corporate pension providers.
About Glencar Healthcare
Glencar Healthcare bridges the gap between healthcare investment and healthcare infrastructure.
Focussed particularly on the efficient provision of public healthcare through privately sourced investment,
Glencar guides and manages the delivery of key healthcare assets. Demographic developments demand
sustained growth in healthcare investment — Glencar is designed to ensure that this investment results in
beneficial outcomes for investors; government funders; and the wider public who utilise the facilities."
About Irish Life Investment Managers:
Irish Life Investment Managers manages money on behalf of Irish Life and a wide range of international
and domestic institutional clients including pension funds, charities and corporates. It is Ireland’s largest
fund manager with a 46% market share and AUM of over €64.9bn as at the end of December 2016.
About the Irish Infrastructure Fund
The Irish Infrastructure Fund provides institutional investors globally with a unique opportunity to invest in
the Irish infrastructure sector. The fund focuses on privately-owned infrastructure assets, infrastructure
assets being privatised by the government and commercial state enterprises and new investment
projects. It aims to provide longer term investors with a stable return, from a combination of income yield
and capital growth, by investing in a portfolio of infrastructure assets which underpin the Irish economy.
The IIF was launched in 2012 by Irish Life Investment Managers (ILIM) to secure and invest up to € 1bn
from global and Irish institutional investors for investment in significant Irish infrastructure assets. In
addition to Valley Healthcare, the fund has made three other investments to date, including a 75 per cent
stake in the 104MW Viridian wind portfolio, wireless telecoms infrastructure business Towercom and the
Convention Centre Dublin PPP.