HSBC Infrastructure raises stake in hospital project

The UK-listed infrastructure investor has acquired an additional 15% equity interest and a 25% loan note interest in the Queen Alexandra Hospital project for £13m.

HSBC Infrastructure Company (HICL), a UK-listed infrastructure investor, has increased its stake in Britain’s Queen Alexandra Hospital project by acquiring an additional 15 percent equity interest and a 25.1 percent loan note interest for is £13.4 million (€ 15.3 million; $21.3 million), HICL said.

The purchase will increase HICL’s equity stake in the hospital to 89.9 percent and its loan note interest to 100 percent, the company said in a statement. The deal is expected to close by the end of the month, following the necessary approvals.

Queen Alexandra Hospital takes the total number of HICL’s incremental acquisitions – where additional stakes are taken in projects the firm has already invested in – to 18, the statement added.

“The Investment Adviser continues to appraise a pipeline of suitable investment opportunities and incremental acquisitions, and confidently expects to secure further acquisitions for the Group,” said Tony Roper, a director at HSBC Specialist Fund Management, the company’s investment advisor.

Earlier this month, HCIL acquired stakes in two UK project finance initiative (PFI) contracts and in two Canadian public-private partnership projects from subsidiaries of Bilfinger Berger for £65.9 million.
HICL is a listed long-term investor in infrastructure projects that are in the operating phase and yielding steady returns. Following completion of its £65.9 million acquisition, the company will own a portfolio of 38 infrastructure projects, 35 of which will be operational.