Saturday 21 July 2018

Infrastructure fund plans hospital buys

"We're considering investing in a range of healthcare infrastructure assets, from elderly care facilities to private hospitals," Doyle said. Stock photo
Gavin McLoughlin

Gavin McLoughlin

The Irish Infrastructure Fund (IIF) is working on plans to consolidate the Irish private hospital market.

The fund - co-managed by AMP Capital and Irish Life Investment Managers - is also seeking opportunities in social housing, nursing homes and primary care centres as it aims to generate returns for its investors - institutions who want long-term stable returns. It plans to spend €100m on primary care centres over the next three years, via its Valley Healthcare arm, IIF principal Philip Doyle told the Sunday Independent, adding that it would look to build and manage centres across rural Ireland.

"We're considering investing in a range of healthcare infrastructure assets, from elderly care facilities to private hospitals," Doyle said.

"The success of these kind of businesses depends on quality of care, most importantly having the right management team in place, and the oversight of a disciplined, experienced investor. AMP Capital has a long track record of managing these kind of assets as we own 50pc of Opal Aged Care, Australia's largest private elderly care provider.

"The private hospital space in Ireland is fragmented, and there is an opportunity for a capable investor to consolidate these assets to deliver economies of scale and deliver improved health services more efficiently," Doyle added.

Other holdings in the IIF include the operating contract for the Convention Centre in Dublin, a wind farm portfolio known as Cyclone Wind Farms, and telecoms tower business Towercom. IIF has recently exceeded €500m of funds under management.

It also has a majority stake in Enet - the entity which looks set to prevail in the race to run the National Broadband Plan after Eir's withdrawal from the process. The State is an investor in the fund via the Ireland Strategic Investment Fund, the successor to the National Pensions Reserve Fund.

Sunday Indo Business

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