HICL Infrastructure, the listed infrastructure investment company, has announced the acquisition of incremental stakes in three existing investments, and the separate disposal of interests in two further projects. The result of these transactions is a net disposal proceeds of £5.8 million.
Following on from the successful disposal of the group's 50% stake in the Doncaster Schools project to Vinci Pensions Limited in November 2012, HICL's Investment Adviser, InfraRed Capital Partners Limited, has continued to examine opportunities to maximise returns from the group's investment portfolio. These transactions are the result of that process and take the group's investment stake in each of the Derby Schools, Newport Schools and Medway Police projects from 80% to 100%, while taking the group's stake in each of the Dorset Police and Swindon Police projects from 80% to zero.
The 20% stakes were acquired from co-shareholder Vinci Investments Limited, and the separate 80% stake disposals were made to Vinci Pensions Limited, the corporate trustee of the Vinci PLC pension fund.
The transaction values were in line with the current valuation of similar UK social infrastructure projects in the group's portfolio.
The net disposal proceeds will be applied to reduce drawings under the group's revolving credit facility. The group's portfolio now comprises 91 infrastructure investments.
Graham Picken, Chairman of HICL, said:
"This transaction has a modest impact on the size of the investment portfolio. However, it demonstrates how the Investment Adviser is undertaking active portfolio management to enhance the value of the portfolio. By rationalising our holdings of specific assets selectively, we are able to enhance value and create efficiencies for the benefit of our shareholders.
With a healthy pipeline of potential new investment opportunities we are confident that the Group can re-invest the net disposal proceeds in a timely manner."