John Laing Infrastructure Fund (JLIF) has completed its biggest fundraising since launch in November 2010, collecting a gross amount of £242.3 million (€289.1 million; $392.5 million).
The issue of new shares by the FTSE 250-listed firm was priced at the top of the range and represented a 6.3 percent premium to net asset value.
The fundraising marginally exceeded the expected maximum amount of £240 million that was stipulated by JLIF when it announced its intention to fundraise in early September. It said it was aiming for a minimum of £100 million.
JLIF chairman Paul Lester said the fundraising “reflects the ongoing success of our low risk, predictable yield model, as well as the continued popularity of the listed infrastructure sector as an asset class”.
JLIF is to use some proceeds of the fundraising to acquire three operational public-private partnership (PPP) assets from UK developer John Laing Group for £103 million.
The assets comprise: a 75 percent interest in North Staffordshire Hospital, England; a 40 percent stake in the Barnsley, England Building Schools for the Future (BSF) project; and 50 percent of the Kelowna and Vernon Hospital, Canada.
Some of the proceeds will also be used to refinance existing bank debt.
JLIF was formed to buy assets from John Laing and was given a “first offer” agreement with respect to future deal opportunities. However, the firm now has roughly a 50/50 split between assets sourced from John Laing and assets sourced from third parties.