JLIF bolsters position in asset with third-party deal

The London-listed infrastructure fund has acquired the 20% it didn’t already own in the UK's North East Fire and Rescue project. The deal marks JLIF's second third-party acquisition.

The John Laing Infrastructure Fund (JLIF) recently acquired full control of a UK social infrastructure project in its second-ever third-party acquisition, the London-listed fund said in a statement.

JLIF bought the 20 percent it didn’t already own in the North East Fire and Rescue (NEFRA) project – a public-private partnership – from UK construction firm Shepherd Construction, giving JLIF sole ownership of the asset.

The fund already owned 80 percent of NEFRA following a raft of acquisitions from developer parent John Laing. The purchase followed a £131 million (€157 million; $208 million) round of fundraising held last year.

Even though the fundraising fell short of target, JLIF still managed to grow the fund’s size by just under 50 percent, increasing it to £428 million. Stock market data shows JLIF currently has a market capitalisation of £460 million.

The NEFRA purchase marks JLIF’s second third-party acquisition, following the purchase of a 50 percent stake in the UK’s Forth Volley Royal Hospital from the Commonwealth Bank of Australia.

JLIF has a long-term internal rate of return target of 7 to 8 percent. To read Infrastructure Investor’s keynote interview with the heads of the fund, please click here