Question-and-Answer Session
Operator
(Operator's instruction) Your first question comes from Robert Kwan - RBC Capital Markets.
Robert Kwan - RBC Capital Markets
Aaron, you mentioned on the Multiplex acquisition, or just Multiplex going forward, that it would provide, or fill the roll, for investment in the PPP project. Are there any formal agreements to collaborate or acquire new investments or acquire future projects from Multiplex?
Aaron Regent
I would say that there are no formal agreements, if you will, we do not have any thick documentation to support that thrust. But from a strategic perspective, we are working closely with the Brookfield Multiplex organization, particularly on the construction of the facilities management side. And as a group, we are now looking at the potential pipeline of projects in the future and working together on those opportunities.
John Stinebaugh
Also Robert, the business development group for the ?PPP’ business is within the infrastructure group.
Robert Kwan - RBC Capital Markets
And if you look forward, what would you envision or feel comfortable with social infrastructure, with respect to percentage of the overall portfolio in BIP?
Aaron Regent
I would say we do not have a specific target. But we should perhaps manage expectations a little bit, in the sense that, when you look at these projects, because they are backed by governments, you have very high credit ratings supporting the cash flow streams. And because of that, you could finance them fairly aggressively, typically in the 90% type level. So, the consequence level equity per project is relatively small. So, as we look to build the business, we do not anticipate this to be a huge business within BIP, particularly as we look to expand into other areas as well. So on a percentage basis I am not sure what the number might be, but, I would say though that we think we can build it into a meaningful business. But, I do not think it is going to be a huge business within BIP.
Robert Kwan - RBC Capital Markets
And then just the last question on the social infrastructure side, how does your view of appropriate discount rates for these types of assets differ from your views on timber or electric transmission and whether that has levered or unlevered?
Aaron Regent
I think it depends at what point you are getting involved in the three ?P’ side. For example, with the projects that we are acquiring right now, there has been a lot of de-risking that has taken place, and so that is going to be reflected in a lower discount rate. But if you are looking at three Ps on the development side, we are targeting returns in the 12% plus type range. So when you look at those returns, it is consistent with the types of returns we're looking for in some of the other assets that we're looking to acquire.
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