HICL Infrastructure, the UK listed infrastructure investment firm advised by InfraRed Capital Partners, has teamed up with existing joint venture partner Kajima Partnerships – the UK arm of Japanese developer Kajima Corporation – to purchase three Private Finance Initiative (PFI) stakes in the UK schools sector for £17.2 million (€19.8 million; $27.7 million).
The stakes have been acquired from Kier Project Investment, the PPP/PFI arm of UK developer Kier Group, and Dexia Credit Local, a subsidiary of Belgian/French bank Dexia.
The acquired portfolio comprises: a 100 percent stake in the Norwich Area Schools PFI project; a 100 percent stake in the Oldham Secondary Schools PFI project; and a 50 percent stake in the Sheffield Schools PFI project. All the projects reached financial close in either 2005 or 2006 and have been operational for a number of years. The concession dates for the projects come to an end between 2031 and 2033.
HICL Infrastructure – which now has a portfolio of 40 infrastructure investments, 38 of them operational – is advised by InfraRed Capital Partners, the team formerly known as HSBC Specialist Investments, which spun out of HSBC earlier this month.
As part of the agreement, the bank retained a 19.9 percent stake in the $4 billion infrastructure and real estate platform. HSBC also said it would consider commitments to future funds of InfraRed on a ‘case by case’ basis.