HICL wants its adviser’s Canada P3 asset

The London-listed fund is seeking shareholder approval to acquire a mounted police headquarters project from InfraRed Capital Partners.

HICL Infrastructure Company (HICL) has proposed the acquisition of a 99.99 percent interest in the Royal Canadian Mounted Police ‘E’ Division Headquarters Public-private partnership (P3) project from its own adviser, InfraRed Capital Partners.

The consideration for the project, located in Surrey, British Columbia, would be approximately C$53 million (€37.4 million; $40.1 million).

London-listed HICL said in a statement that it would be seeking shareholder approval for the acquisition from InfraRed Infrastructure Fund III “as a matter of good corporate governance”.

The firm said it had sent notice of an extraordinary general meeting regarding the proposed acquisition, to be held on 12 August 2015.

The project was procured by the Canadian federal government’s Ministry of Public Works and Government Services and consisted of the design, construction, financing, ongoing facilities management services and lifecycle refurbishment of a 72,000 square meters office building.

Financial close for the project was announced in April 2010 and construction was completed on time in December 2012. Construction was done by a joint venture between Bouygues Building Canada and Bird Design-Build, and the project is now operated and maintained by Bouygues Energies and Services. Total construction cost was approximately C$234 million.

The project would be HICL’s third asset in Canada and “helps diversify the current portfolio further by geography” according to Graham Picken, chairman of the board of HICL, in a statement.

HICL has a portfolio of 101 social and transportation infrastructure investments, mainly in the UK. London-based InfraRed, meanwhile, has invested in more than 160 infrastructure projects since 1997.