HICL secures Dutch prison stake

The UK-listed investment firm is acquiring a 75% interest in the Zaanstad Penitentiary project from Ballast Nedam.

HICL Infrastructure Company (HICL), the listed UK infrastructure investment firm, has announced an investment of €11.5 million to acquire a 75 percent interest in the Zaanstad Penitentiary Institution public-private partnership (PPP) project from Dutch developer Ballast Nedam. 

The project involves the construction and 25-year operation of a new penitentiary in Zaanstad, north-west of Amsterdam. The project, 27.5 years long in total, is governed by a design, build, finance, maintain and operate agreement with the state of the Netherlands. 

The facility, currently being built, will have a capacity of around 1,000 detainees and includes a labour centre, psychiatric care institute, recreational facility, offices and healthcare facilities. The complex is being constructed on a greenfield site of flat land next to the North Sea canal. Work started in April last year and the project is scheduled to be operational in March 2016. 

Obligations for delivery of construction works and for facilities management services have been handed to a single sub-contractor formed by subsidiaries of Ballast Nedam and Dutch technical services provider Royal Imtech. 

In a statement, HICL said its investment was in shares and a loan stock subscription obligation payable following the completion of construction. It was funded by drawing on the firm's revolving credit facility.

HICL added that it had also acquired an additional 12 percent equity and loan note interest in the Newham Building Schools for the Future (BSF) project in the UK for £1.6 million – bringing its overall interest in the project to 80 percent. 

Advised by InfraRed Capital Partners, HICL has a portfolio of 101 social and transport infrastructure investments, most of them with availability-based income streams.