International Public Partnerships Ltd on Wednesday said it is increasing its stake in the Thames Tideway Tunnel/

Tideway is a 25 kilometre, or 15.5 mile, long sewer in construction under the river Thames.

London-based infrastructure investment company International PPL bought the stake due to investor DIF Capital Partners having to dispose its holding due to DIF Capital being an ‘underlying investment fund...coming to the end of its life,’ International PPL said.

With the purchase, International PPL increases its stake in Tideway to about 18%, deploying about £40 million of additional capital.

The investment has a 120-year design life, International PPL added. In a typical year, the sewer aims to reduce polluting discharges into the Thames by about 37 million cubic metres, it said.

‘Following the acquisition, the company is expected to have residual capital raise proceeds of approximately £120 million and its £250 million revolving credit facility undrawn. Accordingly, the company is well positioned to support its about £180 million of near-term investment commitments,’ it added.

Amsterdam-based DIF Capital on Wednesday said it is selling its 11% shares to co-existing shareholders in the project, such as Swiss Life Asset Managers, Dalmore Capital and International PPL. Tideway completed tunnelling in April, DIF capital added.

DIF Capital on Wednesday called the project the ‘largest single asset in the UK water sector.’

International Public Partnerships shares were 1.4% higher at 168.70 pence each in London on Wednesday morning.

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