John Laing Infrastructure Fund has agreed to acquire a portfolio of five UK Public Private Partnership projects from John Laing Group. The combined consideration of approximately GBP141.2 million will be financed by drawing on JLIF’s revolving credit facility.
The portfolio comprises:
JLIF has also signed a sale and purchase agreement with The John Laing Pension Trust Limited in respect of its entire interests in the City-Greenwich-Lewisham Docklands Light Railway (47%), and the Aylesbury Vale Parkway railway station (50%).
All of the projects are availability-based and the weighted average discount rate used to value the portfolio was approximately 7.7%, except for City-Greenwich-Lewisham Docklands Light Railway. The transaction is still subject to certain conditions that are expected to be met in the coming weeks.
The average remaining concession length of the five projects is 19.3 years, in line with the existing portfolio. All the projects are fully operational with exception of the IEP Phase 1 project which remains in its delivery phase and is expected to become fully operational in quarter 4, 2018.
David MacLellan, Chairman of JLIF, said:
“We are pleased to have agreed the acquisition of this portfolio of five UK PPP projects, including an incremental interest in the landmark IEP Phase 1 project. We remain confident in the UK market and in the contractual structures and legal frameworks that govern UK PPP contracts. We continue to manage actively our current portfolio and to pursue selectively opportunities for further investment where these align with our investment objectives and offer value for shareholders.”