Deals

HSBC Infrastructure in £16.8m Scottish school deal(3)

The listed infrastructure investor has taken a 50 percent stake in a PPP schools project north of the English border. The deal follows a recent £6.8 million in another schools project in Scotland, the Renfrewshire Schools project.

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HSBC Infrastructure Company, which is listed on the London Stock Exchange, has invested £16.8 million (€19.5 million; $27 million) in a public-private partnership (PPP) social infrastructure project in Scotland.

The fund has acquired a 50 percent stake in Highland School from a local body, Morrison Education (Highland) Limited, in exchange for the cash.

Schools: attractive
investments for HSBC

In a statement, HSBC Infrastructure said the price was in line with the current valuation range of similar PPP investments in its portfolio. The acquisition of equity and loan notes is payable in cash from existing resources, it added.

HSBC Infrastructure’s investment follows hot-on-the-heels of last month’s deal to acquire a 30 stake for £6.8 million in another schools project. The firm teamed up with Renfrewshire Schools project in Scotland, which covers 10 primary and secondary schools across the region.

The 30-year all new-build concession comprises five primary schools, three secondary schools, a combined primary and secondary school, and a special needs school. Construction has been completed in stages and is due to be fully completed in the autumn.

Recently the fund has also been active in corporate matters as well. Earlier this week it issued 750,000 new shares to raise £82.4 million for “general corporate purposes”.