International Public Partnerships (INPP) has defied sceptics over its 2015 investment in the Thames Tideway Tunnel, with the 16-mile sewer completed as planned in March 2024. In the year to 31 March, it diverted over 20 million tonnes of sewage and drain overflow, preventing more than 1,000 spills and cutting untreated waste water entering the river by 95%.
The project, carved out from Thames Water, now represents 15.6% of INPP's £2.9 billion net assets. The fund also holds similar-sized stakes in gas distributor Cadent and offshore transmission owners, which connect wind farms to the grid.
INPP is shifting towards higher-return projects, including a £254 million commitment to Sizewell C nuclear power station for a 3% stake, expected to generate an annual cash yield of 6% during construction and early operations. It is also trimming mature investments, selling part of its Angel Trains stake for £3 million and stakes in 15 London schools for £58 million.
The trust is trading at a 7% discount to net asset value, with a 6% yield and 72% of assets in the UK. A writedown of its £24 million broadband investment was described as not material, and guidance remains unchanged.