John Laing infra fund raises £27m to buy four projects

The four operational projects, part of the UK’s project finance initiative, were bought through the fund’s first offer agreement with developer John Laing. The fund expects to be able to tap into £300m of acquisition opportunities from John Laing over the next three years.

John Laing Infrastructure Fund (JLIF) has successfully raised £27.4 million (€31.3 million; $44.4 million) to acquire four operational projects in the healthcare, social infrastructure and regeneration sectors, the fund announced yesterday.

The projects are part of the UK’s project finance initiative (PFI), the country’s standardised procurement process for public-private partnerships, and have an average of 25 years left on their concession agreements. They were bought from John Laing through JLIF’s first offer agreement with the developer. The four acquisitions add to the 19 projects acquired by JLIF last December, after the fund raised £270 million via its initial public offering on the London Stock Exchange.

JLIF expects to be able to leverage its close relationship with John Laing to tap into a pipeline of £300 million of acquisition opportunities over the next three years. David Marshall, director of John Laing Capital Management, the fund’s management company, had previously told Infrastructure Investor he plans to raise money to acquire a further 17 projects to “more than double the size of the fund.”  

The fund’s portfolio is mostly concentrated in the UK but it also owns assets in Finland and Canada. John Laing is the largest shareholder in the John Laing Infrastructure Fund, with 23.1 per cent of the shares.