HICL Infrastructure acquires stakes in two UK PFI projects
HICL Infrastructure Company Limited (HICL), the listed infrastructure investment company, has announced the acquisition of two incremental investments which comprise:
- a further 19% interest in the Sheffield BSF Schools project from Building Schools for the Future Investments LLP, which takes HICL's ownership to 59%; and
- a further 50% of the Oldham Library PFI Project in conjunction with an existing joint venture partner, Kajima Partnerships Limited (KPL), from a subsidiary of Kier plc.
HICL and KPL have established a new joint venture holding company (HoldCo) in which HICL has a 90% shareholding. Following the Kiert ransaction, HoldCo now owns 100% of Oldham Library, increasing HICL's ownership from 50% to 90%.
Sheffield BSF is a 27-year PFI concession which involved the design, construction, financing, maintenance and operation of two new secondary schools and one new special educational needs secondary school in Sheffield, on behalf of the Sheffield City Council. The project was signed in July 2007 and has been fully operational since September 2009.
Oldham Library is a 25-year PFI concession which involved the design, construction, financing, maintenance and operation of a new library and lifelong learning centre in Oldham, on behalf of the Oldham Metropolitan Borough Council. The project was signed in May 2004 and has been fully operational since January 2006.
The consideration paid by HICL for both incremental investments is in line with the current valuation of similar UK social infrastructure projects in the group's portfolio.
Tony Roper, Director of InfraRed Capital Partners Limited, said:
"We are pleased to have completed these two incremental acquisitions in good, operational projects which meet the Group's strategy of increasing its stakes to majority ownership when the opportunity arises. It further demonstrates how the Group can leverage the existing portfolio to increase ownership when suitable opportunities arise."