JLIF completes acquisitions of PPP projects
Related M&A Transactions
- JLIF acquires 50% stake in the South East London Police Stations project from John Laing Group
- JLIF acquires 40% stake in the Gröningen Tax Office from John Laing Group
JLIF, the listed infrastructure investment company, has announced that, following its successful £50 million placing earlier this month, it has completed the acquisition of two assets from the John Laing Group portfolio announced on 11 September 2014.These are:
- A 40% stake in the Gröningen Tax Office project in the Netherlands, a 20 year concession encompassing the operation of 47,000m2 of office accommodation, 700 parking spaces and 9,000m2 of public gardens; and
- A 50% stake in the South East London Police Stations project which, across all four stations,provides 34,000m2 of internal space, including 96 custody cells and stabling for 24 horses.
The final asset in the stated portfolio is a 100% shareholding in the North Birmingham Mental Health project, JLIF anticipates to complete the acquisition in the near future.The three projects are fully operational, with contracted government-backed revenue streams, linked to inflation, and a weighted average life of 17.1 years from the date of acquisition.
The valuation of the New Portfolio was derived by discounting the future cash flows from the underlying asset financial models using a discount rate on a basis comparable with current valuations of similar PFI/PPP projects in the company's existing portfolio. According to the firm, JLIF will continue to evaluate acquisition opportunities and expects to make further acquisitions in the future.David Marshall from John Laing Capital Management, Investment Adviser to JLIF, commented:
We are delighted to announce the completion of these two acquisitions from the John Laing portfolio, using the funds raised as part of our stated strategy. JLIF has a successful track record of identifying and developing acquisition opportunities prior to raising new capital, thereby maximising shareholder return.