Since 2008, Preqin’s Infrastructure Online service has reported approximately 6,000 infrastructure deals. Of these, around 13% of total deals equate to social infrastructure deals, with an estimated aggregate deal value of $150bn. Social infrastructure can be broadly defined as long-term physical assets that facilitate social services – typically schools, medical facilities, state or council housing and court houses, among others.
In terms of geographic scope, Europe is the dominant region in terms of total deals completed, accounting for 78% of social infrastructure deals. North America accounts for 10% of deals, Asia 3%, and countries outside these three regions represent 9% of completed transactions. The largest number of deals took place in the United Kingdom, representing 64% of all social infrastructure deals completed between 2008 and 2014 YTD.
There have been a number of notable transactions that have taken place in the social infrastructure market since 2008. In Australia, Lend Lease and Siemens Financial Services acquired a 100% stake in the Sunshine Coast University Hospital for AUD 2bn. Also, in France, the Bouygues Group and others acquired a 100% stake in the French Ministry of Defence for €3.5bn. Notably, 57% of all social infrastructure deals completed since 2008 are in secondary stage assets, while hospitals and healthcare facilities account for 37%.