HICL Infrastructure has announce the acquisition of a 99.9% interest in the Royal Canadian Mounted Police 'E' Division Headquarters P3 project (RCMP) in Surrey, Canada, for CAD53 million (US$40.8 million).
The project, which is being acquired from the InfraRed Infrastructure Fund III, consisted of the design, construction, finance, and ongoing facilities management services and lifecycle refurbishment of a 72,000m2 RCMP Headquarter office facility building.
Financial close occurred in April 2010 and construction was successfully completed on time in December 2012. Construction was undertaken by Bouygues Building Canada Inc and Bird Design-Build Limited and is now being operated, managed and maintained by Bouygues Energies & Services.
The total construction cost was approximately CAD234 million (US$180.2 million).
The project, which would be the HICL's third investment in Canada, complements the other investments in the portfolio. The acquisition will be funded from the company's revolving debt facility.
Graham Picken, Chairman of the HICL's Board, said:
"This acquisition fits within the company's investment strategy and helps diversify the current portfolio further by geography. The board unanimously recommends that shareholders vote in favour, as all of the Directors intend to do in respect of their own beneficial holdings of ordinary shares."