HSBC Infrastructure raises stake in Sussex PFI project

HSBC Infrastructure Company, a UK-listed infrastructure investor has increased its stake in a Sussex custodial centre project by acquiring an additional 7.55 percent equity interest and 17.65 percent loan note interest. This takes the total number of incremental acquisitions made by the company to 16.

HSBC Infrastructure Company (HICL) has increased its stake in the Sussex Custodial Centre PFI Project by acquiring an 7.55 percent equity interest and 17.65 percent loan note interest, taking its total equity interest in the project to 89.9 percent and loan note interest to 100 percent, the company said in a statement.

The total consideration for these latest interests, according to HICL, is £1.1 million (€1.3 million; $1.7 million). The deal takes the total number of HICL’s incremental acquisitions – where additional stakes are taken in projects the firm has already invested in – to 16, the statement noted.

“This opportunity arose through a desire from our fellow shareholder in the project to crystallize a portion of their investment in this mature project, thus enhancing their financial flexibility to invest in additional public sector opportunities in this, their core market. We are pleased to acquire this additional stake in such a well managed project,” said Tony Roper, a director at HSBC Specialist Fund Management, the company’s investment advisor.

HICL is a listed long-term investor in infrastructure projects that are in the operating phase and yielding steady returns. The company owns a portfolio of 34 infrastructure projects, out of which 33 are operational.