German insurance and investment titan Allianz has revealed plans to expand its involvement in the UK government's private finance initiatives (PFI) having successfully concluded its first deal.
In an interview reported on the Allianz website, Andrew Cowley of Allianz Specialised Investments in London revealed that that his company was in the early stages of exploring further ways to invest via PFI.
The PFI is a scheme set up by the UK government to attract private capital to finance public infrastructure development, such as schools and hospitals. For the investor the partnership provides relatively safe and long-term earning opportunities.
The move to increase its involvement in the PFI follows on closely from Allianz Specialised Investments’ recent completion of its first transaction under the scheme in which it teamed with specialist PFI developer and manager, John Laing, to purchase 50% of the equity in four PFI projects in the UK.
These include police stations in Southeast London and Greater Manchester, as well as two police firearms training centers. Allianz will receive income from these assets until 2030.
For Allianz, this represents an initial step in building a diversified portfolio of PFI assets, and possibly related areas of infrastructure, in partnership with leading developers in the UK. Furthermore, going forward Allianz believes that similar opportunities could soon be available in Germany and France.