European Infrastructure Transactions – June 2014

by Stephen Yates

  • 18 Jun 2014
  • INF

Preqin’s newly expanded infrastructure deals feature on Infrastructure Online now includes extensive information on over 8,700 completed transactions in infrastructure assets globally. These deals involve a variety of investors, ranging from infrastructure fund managers and direct institutional investors, to industry players such as developers, contractors and other industry-specific trade investors. Over 5,500 transactions have been completed since 2007, with an estimated deal value of over $1tn. Within this space, Europe is the most prominent region within the infrastructure market, accounting for 45% of the total number of deals completed since 2007.

The annual number and estimated aggregate value of deals completed within the European infrastructure market has increased considerably in recent years. In 2007, 287 deals were completed within Europe, with an estimated aggregate deal value of $124bn. Preqin’s estimated deal value is calculated using the total reported value of all deals, where this is known, plus the average deal value for transactions where a deal size has not been disclosed. 2011 saw Europe-based deal transactions reach an all-time high, with 397 transactions with an estimated aggregate deal value of $180bn. 2013 was similarly high, with 368 transactions reporting an estimated aggregate deal value of $164bn. 2014 to date has also made a promising start, with 106 Europe-based deals having been completed with an estimated aggregate deal value of $53bn.

Between the years 2007 and 2014 YTD, deals valued at less than $100mn accounted for the majority of transactions completed, representing 42% of Europe-based deals completed in 2007 and 47% of Europe-based deals completed in 2014 YTD. Most notably, however, the number of deal transactions completed with a value above $1bn has grown significantly between the years 2007 and 2014 so far, increasing from 15% to 23%.

The vast majority of Europe-based infrastructure deals take place in the UK, representing 52% of Europe-based deal transactions between 2012 and 2014 YTD, with the next closest country being France with 9%. Germany accounts for 7% of Europe-based deals completed in the same period, with Italy, Netherlands, Spain and Turkey all individually accounting for 4% of completed transactions.

In terms of specific industry, energy assets are the most prominent, representing 49% of all Europe-based deals completed since 2012. Transport is next in terms of significance with such assets accounting for 14% of all Europe-based transactions during the same period, closely followed by utilities, representing 13%. Other notable industries include healthcare/medical facilities (7%), education facilities (7%) and government buildings (4%).  The large majority of these Europe-based assets were already operational when the deal was struck, with 68% at the secondary stage of the development lifecycle, a further 8% at the brownfield stage of development, and the remaining 24% greenfield.

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