HSBC Infrastructure lands schools PPP stake(4)

The infrastructure investor has acquired a 34% interest in the Bradford Schools Phase 2 PFI project in West Yorkshire, England, after the scheme’s sponsoring consortium secured financing for the deal. It is HICL’s third investment in a schools project since March.

HSBC Infrastructure Company Limited (HICL) has acquired a stake in a schools PPP project following the financial close on the Bradford Schools Phase 2 PFI project in West Yorkshire, England.

The infrastructure investor said in an announcement to the London Stock Exchange that it has acquired a 34 percent interest in the scheme, which has a total capital value of £230 million (€263 million; $377 million).

HICL is part of the Integrated Bradford consortium which is sponsoring the project and  also includes construction firm Costain and Ferrocial-owned public services provider Amey. HICL has provided a £7.4 million funding commitment in the project, which is due when construction is scheduled to conclude in 2011.

The project will provide procuring authority Bradford Metropolitan District Council with four new secondary schools. A Costain-Ferrovial Agroman joint venture will carry out the design and construction work on the project, while Amey Communities will take responsibility for facilities management services.

The transaction is HICL’s third investment in a schools PPP since March. It had previously acquired a 30 percent interest in a scheme in Renfrewshire, Scotland, for £6.8 million and a 50 percent stake in the Highland Schools PPP, also in Scotland, for £16.8 million.

In May the company posted a full year loss of £22 million after marking down the valuation of its portfolio, although it nevertheless increased its dividend by 2.4 percent, citing strong operational performance.