John Laing Infrastructure Fund (JLIF) has announced a placing of up to £50 million (€63 million; $81 million) by way of a tap issuance.
The London-listed vehicle will use the majority of the proceeds to acquire three Private Finance Initiative (PFI) / Public Private Partnership (PPP) projects from UK developer John Laing, as well as a stake in one of the projects from the John Laing Pension Trust.
The assets will be purchased for about £39 million, a valuation derived by discounting their future cash flows with a discount rate in line with the one used to value the company’s similar PFI/PPP projects.
They comprise a 50 percent stake in the South East London Police Stations project, which includes four Southeast London police stations located in Lewisham, Sutton, Bromley and Deptford; a 40 percent share in the Groningen Tax Office project, based in Holland; and a 100 percent stake in the North Birmingham Mental Health project, which comprises seven specialist mental healthcare facilities.
The weighted average life of this new portfolio is 17.1 years from the date of the acquisition, which is not conditional to the placing of JLIF’s new shares. The three projects are fully operational and yield contracted, government-backed revenue streams linked to inflation.
The transaction will take the company’s total assets to 55, funded by the £800 million it has raised since its launch in 2010. The portfolio has produced a 38 percent share price total return since inception, according to a statement by JLIF.