HICL doubles fire and rescue stake

The UK listed infrastructure fund, which is advised by InfraRed Capital Partners, has increased its stake in the Dorset Fire and Rescue PFI from 33.5% to 67%. The stake has been acquired from Morgan Sindall Investments.

HICL Infrastructure Company (HICL) has announced the acquisition of a 33.5 percent equity and loan note interest in the UK’s Dorset Fire and Rescue Private Finance Initiative (PFI) project. The acquisition will double HICL’s interest in the project to 67 percent.

In a statement, HICL said it had paid £3.8 million (€4.6 million; $6.0 million) to buy the stake from Morgan Sindall Investments, a UK-based project developer and investor. It said the purchase was funded from existing cash and debt resources.

Dorset Fire and Rescue is a 27-year concession to design, build, finance and maintain a combined police and emergency services headquarters building in Poole as well as a fire station and fire services headquarters building in Poundbury, Dorchester.

The project reached financial close in July 2007 and construction was completed in December 2009. Facilities management services are provided by Cofely Technical Services, which is part of GDF Suez.

In December last year, HICL acquired a collection of 26 PFI and public-private partnership (PPP) stakes from two funds managed by Barclays Infrastructure Funds Management for £143 million. Then, last month, it announced it was expecting to undertake a share issue in March to pay down a revolving debt facility deployed for the Barclays acquisition.

The HICL fund listed on the London Stock Exchange in 2006 and, according to the InfraRed Capital Partners website, has over £700 million under management. InfraRed, which spun out of HSBC last year, is the investment adviser to the fund.