John Laing to launch IPO of environmental infrastructure unit
UK's infrastructure developer, John Laing, has announce its intention to sell seven operational and yielding environmental infrastructure assets to the newly launched fund, John Laing Environmental Assets Group Limited (JLEN). The divestment will be concluded upon the successful completion of JLEN's initial public offering.
Within the environmental infrastructure sector, John Laing is currently focused on building its onshore wind, solar photovoltaic (PV), waste management and biomass portfolio of projects in the UK and Northern Europe. It owns 16 environmental infrastructure assets in operation and development, 14 of which are in the UK and two in Northern Europe. During 2013, John Laing closed seven onshore wind and solar PV deals representing an investment commitment in excess of £80m.
Three of John Laing's 16 environmental infrastructure assets that will be sold to JLEN are onshore wind projects with a total generating capacity of 44 MW, while two are solar PV plants with a combined capacity of 25 MW (one of which is intended to be acquired from John Laing subject to sufficient proceeds being raised by JLEN). The two waste management assets comprise mature operating PFI contracts that are processing and recycling municipal waste at Dumfries and Galloway in Scotland and in East London for four London boroughs (Redbridge, Barking and Dagenham, Havering and Newham).
It is intended that John Laing Investments Ltd will subscribe for up to 24.9 per cent. of the JLEN IPO and will be a cornerstone investor following the fund's admission to trading on the London Stock Exchange (subject to a priority scale back to not fewer than 10 per cent. of the ordinary shares to be issued pursuant to the Issue if the Issue is oversubscribed). John Laing Investments' subscription may be increased in certain circumstances, subject always to a maximum subscription of 29.9 per cent. of the ordinary shares to be issued pursuant to the Issue.
The divestment follows the successful launch of the Jonh Laing Infrastructure Fund (JLIF) in November 2010. As at 31 December 2013, JLIF had generated a total shareholder return of 33 per cent. since launch, demonstrating that John Laing has the skill and core competencies to promote, develop and grow new funds.