HICL Infrastructure Company Ld Conditional Acquisition of a new investment (7970Q)
December 02 2016 - 2:00AM
UK Regulatory
TIDMHICL
RNS Number : 7970Q
HICL Infrastructure Company Ld
02 December 2016
2 December 2016
HICL Infrastructure Company Limited
Conditional Acquisition of a new US$166m investment
HICL Infrastructure Company Limited ("HICL" or the "Company"),
the listed infrastructure investment company advised by InfraRed
Capital Partners Limited ("InfraRed"), is pleased to announce that
it has reached an agreement to acquire a 33.3% equity interest in
Northwest Parkway (the "Project"), a toll-road located in the
Denver metropolitan area of Colorado, U.S.A. HICL is part of a
consortium alongside DIF Infrastructure IV and Northleaf Capital
Partners, which has agreed to acquire a 100% equity interest in the
Project from Brisa, a Portuguese toll-road operator.
The Project is a 99-year concession, signed in 2007, to operate
and maintain a 14km section of the beltway system extending around
Denver. The Project has good traffic history as the road was opened
in 2003 and connects with several toll and non-toll highways,
including E-470, I-25, U.S. 36 and U.S. 287, providing convenient
access to residential and commercial centres in the region. Project
revenues are generated by tolls through an all-electronic tolling
system. The counterparty to the concession is the Northwest Parkway
Public Highway Authority.
Completion is subject to a limited number of conditions and is
expected in the first half of 2017. HICL's share of the
consideration is approximately US$166 million, which will be paid
at completion, funded by cash and drawing under the Group's
enlarged revolving debt facility. With completion of the
acquisition not due until the first half of 2017, the HICL Group's
funding surplus of approximately GBP11m remains unchanged.
Tony Roper, Director, InfraRed Capital Partners Limited,
said:
"We are delighted to have signed the agreement to acquire a
substantial interest in the Northwest Parkway toll-road, which is
strategically located in a dynamic region of Colorado, forming part
of the ring road around Denver. When it completes, this will be
HICL's first investment in the USA.
The Project is consistent with the stated strategy and supports
HICL's disciplined investment proposition, which is to produce
long-term income for shareholders from a portfolio of
infrastructure investments that is positioned at the lower end of
the risk spectrum. The Company's acquisition strategy targets
suitable opportunities in three market segments, including
demand-based assets like Northwest Parkway. With a 90-year
concession life remaining and strong inflation-linkage, this asset
is well-placed to deliver attractive returns."
-ends-
This announcement contains Inside Information.
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Tony Roper
Keith Pickard
Harry Seekings
Tulchan Communications +44 (0) 20 7353 4200
David Allchurch
Latika Shah
Canaccord Genuity Limited +44 (0) 20 7523 8000
Dominic Waters
Neil Brierley
Will Barnett
David Yovichic
HICL Infrastructure Company Limited
HICL Infrastructure Company Limited ("HICL" or the "Company",
and together with its subsidiaries the "HICL Group") is a long term
investor in infrastructure assets which are predominantly
operational and yielding steady returns. It was the first
infrastructure investment company to be listed on the London Stock
Exchange. With a current portfolio of 113 infrastructure
investments (including the A63 and Northwest Parkway commitments
with limited conditions to completion), HICL is seeking further
suitable opportunities, which are positioned at the lower end of
the risk spectrum, in three target markets segments: PPPs;
regulated assets; and demand-based assets.
Further details can be found on the HICL website,
www.hicl.com.
Investment Adviser
The Investment Adviser to HICL is InfraRed Capital Partners
Limited ("InfraRed") which has successfully invested in over 200
infrastructure projects since 1997. InfraRed is a leading
international investment manager focused on infrastructure and real
estate. It operates worldwide from offices in London, Hong Kong,
New York, Seoul and Sydney. With over 120 professionals it manages
in excess of US$9bn of equity capital in multiple private and
listed funds, primarily for institutional investors across the
globe. InfraRed is authorised and regulated by the Financial
Conduct Authority.
The infrastructure investment team at InfraRed consists of 60
investment professionals, all with an infrastructure investment
background and a broad range of relevant skills, including private
equity, structured finance, construction, renewable energy and
facilities management.
InfraRed implements best-in-class practices to underpin asset
management and investment decisions, promotes ethical behaviour and
has established community engagement initiatives to support good
causes in the wider community. InfraRed is a signatory of the
Principles of Responsible Investment.
Further details can be found on InfraRed's website,
www.ircp.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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