Construction group Bilfinger Berger has launched an investment trust to take advantage of public sector infrastructure assets.

The Bilfinger Berger Global Infrastructure SICAV is seeking to raise £212 million by selling the same number of ordinary shares at £1 each, minus the company's own 19.9 per cent stake in the fund.

Under private finance initiative (PFI) and public private partnership (PPP) legislation, private sector companies are able to bid for contracts for public sector initiatives, such as the construction of roads and bridges.

The Luxembourg-domiciled trust will fully invest in a portfolio of up to 19 PFI or PPP infrastructure assets to be acquired from Bilfinger Berger Project Investments and will be spread across availability-based roads and a range of social infrastructure.

Bilfinger has targeted an initial dividend yield of 5.5 per cent a year.

UK-based assets will compromise 41.4 per cent of the portfolio, with 26.9 per cent in Canada, 26.9 per cent in Australia and 4.8 per cent in Germany. 

In a statement, the group said the portfolio will provide investors with income from assets that are already operational or 'near operational'.

Co-manager Frank Schramm told WhatInvestment.co.uk, 'Our assets are producing income already. The 'near operational' means we are waiting for the final sign-off from the government on a couple of projects but the other 98.5 per cent are already fully operational.'

The group said the trust, which will be managed by Schramm and Duncan Ball of the PFI/PPP management team at Bilfinger, would have the opportunity to make further investments in Bilfinger's construction projects. This should decrease the total expense ratio (TER), which is currently set at 1.5 per cent.

Schramm told WhatInvestment.co.uk, 'Where we are different from our peers is that our assets are all availability-based, meaning [they have] a stable cash flow linked to inflation.

'We believe roads are easier to manage than buildings so about 40 per cent of the portfolio is in roads - all of which are availability-based. We've no toll roads. Two of our biggest holdings are the Golden Ears Bridge (pictured) in Canada and the M80 project in Scotland.'