Infrastructure trust International Public Partnerships (LON:INPP) has announced a further €26 million (£21.7 million) investment in BeNEX. Wholly owned by INPP, BeNEX is a German regional rail operations and rolling stock business. BeNEX has won a new concession to operate the Rhein-Ruhr-Express, Teilnetz B (RRX-B).
The investment takes the total committed by INPP to BeNEX this year to €72 million. Bulls argue the deal highlights the growth opportunities embedded within the trust’s existing portfolio.
What is INPP?
For the uninitiated, INPP invests in global public infrastructure projects and businesses, which meet societal and environmental needs. The FTSE 250 company is a long-term investor in over 130 infrastructure projects and businesses.
International Public Partnerships
Its portfolio is reassuringly diversified across utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses. These investments span the UK, Europe, Australia, New Zealand and North America.
BeNEX on track for growth
INPP made its first investment in BeNEX in 2007 as one of its two founding shareholders. The trust took 100% control of the business in 2019. In late 2024, BeNEX acquired Abellio’s rail operations in Germany for which INPP invested an additional €18 million in BeNEX.
Under the stewardship of INPP and its investment adviser Amber, BeNEX has grown significantly by increasing the train kilometres provided across Germany by more than four times. BeNEX spoke for 4.3% of INPP’s portfolio value as at 30 June 2026.
‘The acquisition is expected to generate an attractive IRR (internal rate of return) in the low to mid-teens, in excess of that implied by a share buyback,’ stressed INPP.
This looks to be another solid investment for INPP, which offers investors an attractive combination of long-term yield and capital growth.
One of the best 10-year share price total return performers in the AIC’s Infrastructure sector, INPP trades at a near-9% discount to NAV. The fund should interest income-seekers, since it offers an inflation-busting, 6%-plus dividend yield.
| AIC Infrastructure sector | Discount to NAV | 10-yr share price total return (%) |
| 3i Infrastructure | -2.8% | +175.5 |
| International Public Partnerships | -8.8% | +47.1 |
| Sequoia Economic Infrastructure Income | -11.6% | +43 |
| HICL Infrastructure | -15.7% | +38.6 |
| GCP Infrastructure Investments | -17.6 | +29.6 |
Source: The AIC/Morningstar
The anticipated IRR on the BeNEX investment is attractive, comfortably exceeding both the portfolio discount rate and the implied return from share buybacks.
Yet as one analyst cautioned: ‘With INPP’s shares trading at a substantial discount to NAV, the balance between reinvestment and capital returns remains important.
‘The £440 million of realisations achieved or committed since June 2023, with completed sales all at or above carrying value, provides welcome validation of valuations. The challenge is translating this value creation into improved shareholder returns and a narrower discount.’
