HICL Infrastructure Company Limited has sold its 56% equity and subordinated debt interest in the Colchester Garrison MoD Project to subsidiaries of Allianz Group, the PPP Equity PIP limited partnership and Dalmore Capital Fund II limited partnership, both managed by Dalmore Capital Limited.
The Garrison at Colchester MoD is home to the 16 Air Assault Brigade, Britain's primary rapid reaction force. The facilities includes more than 110 buildings across the 185 hectare site.
According to HICL, the profit on disposal, after costs, is £21.7 million (US$32.7 million) over the Directors' valuation of £86.6 million (US$130.5 million) as at 30 September 2014.
The decision to sell was taken following the recent disposal by a co-shareholder of its holding in Colchester. The sale of the Group's holding in Colchester constitutes the contracted disposal to which reference was made, on a no-names basis, in the Company's interim results in November of last year.
"Following receipt of very attractive offers for this asset, the Board concluded that, rather than exercise the Group's pre-emption rights, it was in shareholders' best interests to sell and re-invest the proceeds. We continue to evaluate a pipeline of suitable investment opportunities and are confident of being able to re-invest this capital."