HICL Infrastructure sells interest in school project

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HICL Infrastructure sells interest in school project

HICL Infrastructure Company Limited Limited has sold its entire 50% equity and subordinated debt interest and 100% junior loan interest in Scottish Fife Schools PFI project to a subsidiary of the PPP Equity PIP limited partnership, managed by Dalmore Capital Limited.

Fife PFI project includes three schools: the new build of Queen Anne High School; the new build of Beath High School; and a new primary school to replace Anstruther Wester and Cellardyke schools. The project achieved financial close in 2001 and all schools are now fully operational.

The decision to sell the group's investment in Fife was triggered by the same co-shareholder selling their interest in the Fife project as that in the Colchester Garrison project, announced in February 2015. As with Colchester, this disposal was undertaken by way of a competitive tender process, providing a benchmark value for the company's interest in Fife which the board considered to be significantly ahead of the value that could be achieved by retaining the project.

The profit on disposal, after costs, is £0.6 million over the directors' valuation of £6.7 million as at 30 September 2014.  As a result of recent investment activity funded from the Group's revolving debt facility, and net of disposal proceeds from the present transaction, the group has a current funding requirement of approximately £8 million. The board continues to consider and evaluate potential disposals.

HICL Infrastructure Company Limited is the listed infrastructure investment company advised by InfraRed Capital Partners Limited. Two weeks ago we reoported that the company acquired from Hochtief AG a 40% interest in the Salford & Wigan phase 1 (S&W Phase 1) and a 40% interest in the Salford & Wigan phase 2 (S&W Phase 2)

Also in April, the firm invested €11.5 million for a 75% interest in the Zaanstad Penitentiary Institution PPP project, acquired from a subsidiary of Ballast Nedam BV.

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