Infrastructure investment company International Public Partnerships has conditionally agreed to acquire a further shareholding in the Thames Tideway Tunnel, a 25-kilometre “super sewer” being built under the Thames in order to create a healthier environment for London.

International PPL said on Wednesday that the opportunity was conditional on third-party approvals and had arisen as a result of another existing investor, DIF Capital Partners, having to dispose of its stake.

The FTSE 250-listed firm stated that the stake would now be acquired by other continuing investors in Tideway and, if completed, would result in INPP increasing its interest in the project to approximately 18% and deploying approximately £40.0m of additional capital.

International PPL stated the investment would be funded with proceeds from the capital raise it conducted in April. Following the acquisition, the group expects to have residual capital raise proceeds of approximately £120.0m and its undrawn £250.0m revolving credit facility. The transaction was also expected to be accretive to the INPP’s net asset value.

Chairman Mike Gerrard said” “We welcome the opportunity to increase our position in this crucial environmental asset. It is timely that the company is making a further investment into Tideway as it reaches the conclusion of underground excavation works.”