HICL adds four assets for £108m

The listed UK infrastructure fund manager now has 89 portfolio investments after swooping for stakes in a collection of PFI projects.

HICL Infrastructure Company (HICL), an infrastructure fund manager listed on the London Stock Exchange, has spent £107.9 million (€125.9 million; $164.1 million) on stakes in four UK Private Finance Initiative (PFI) projects.

The four acquired interests are:

*A 50 percent equity and loan note interest in the Salford Hospital PFI from Balfour Beatty Infrastructure Investments. This is a 35-year concession to design, construct and commission new-build hospital facilities and site infrastructure in Salford, Greater Manchester. The project reached financial close in 2007 and construction was completed in 2012.

*A 33.33 percent equity and loan note interest in the Miles Platting Social Housing PFI from a subsidiary of Morgan Sindall. This 30-year concession also reached financial close in 2007 and was fully built in 2012. It has seen the redesign and refurbish of 1,500 occupied properties and the building of 20 new care homes and 11 new family homes in Miles Platting, Manchester.

*A 75 percent equity and loan note interest in the Gloucester Fire and Rescue PFI from subsidiaries of Kier, Cardon Croft and Capita. This 26-year concession involved the financing, design, construction, operation and maintenance of four community fire stations and the “SkillZone” educational centre. The project reached financial close in 2011 and was built the following year.

*A 12.5 percent equity and loan note interest in the Allenby & Connaught Ministry of Defence (MoD) PFI from a subsidiary of Carillion. This 35-year concession comprised the design, building and financing of new and refurbished MoD accommodation at four locations on Salisbury Plain, including working, leisure and living quarters as well as ancillary buildings. The project reached financial close in 2006 with some aspects of construction still remaining to be completed over the next year.

As a result of the purchases, which bring the HICL portfolio to 89 assets in total, the firm said it has a net funding requirement of £85 million, which is principally financed through drawing on a £100 million revolving credit facility. It said it would seek to repay these drawings by way of equity tap issuance.

The latest deals come after HICL spent £41.6 million on two new stakes towards the end of May – one a hospital project and the other a university project.