UK-listed 3i Infrastructure has invested £27.4 million (€38.6 million; $45 million) over the past three and a half months, including £23.9 million devoted to increasing its holding in UK water utility the Anglian Water Group.
In its interim management statement for the period April 1 to July 15, the company said it has acquired from 3i Group an additional stake in 3i Osprey LP, the special purpose vehicle through which 3i Infrastructure and 3i Group hold their interests in Anglian Water. The £23.9 million investment has resulted in 3i Infrastructure increasing its stake in Anglian Water by 1.3% to 10.3%, which the company described as a “successful investment” and “providing a very strong yield”.
The remaining £3.5 million of investments is understood to comprise further drawdowns to 3i Infrastructure’s existing holdings in Alpha Schools in Scotland and Adani Power.
3i Infrastructure said its portfolio continues to perform satisfactorily and is set to deliver a robust yield going forward. At the end of March 3i Infrastructure’s portfolio was valued on an investment basis at £536.7 million, delivering an 8.8% total return on average shareholders’ equity.
Cressida Hogg, 3i Investments’ managing partner for infrastructure, said there remained an attractive market opportunity for investing in infrastructure. The company has previously indicated it is looking to increase its exposure to the social infrastructure, renewable energy and UK electricity sectors.
3i Infrastructure currently has a cash position of £338.1 million, with no borrowing. It has not as yet resorted to drawing on a £225 million revolving credit facility set up in March last year.
In its last full year results, published in May, the company posted a total return on an investment basis of £73.2 million, down from £90.5 million the previous year.
3i infrastructure is 33 percent owned by global private equity investor 3i Group and is part of the FTSE 250 index. Its shares closed yesterday at 94.75 pence, with the company's market capitalisation at £768.5 million. In March the shares had traded below 80 pence.
The company will announce its half-year results in November, when it will also publish its net asset value as at September 30.