HICL Infrastructure PLC Disposal of Bradford Schools PPPs for c. GBP37m (6292M)
September 18 2023 - 1:00AM
UK Regulatory
TIDMHICL
RNS Number : 6292M
HICL Infrastructure PLC
18 September 2023
18 September 2023
HICL Infrastructure PLC
"HICL" or "the Company" and, together with its subsidiaries,
"the Group", the London-listed infrastructure investment company
managed by InfraRed Capital Partners Limited ("InfraRed" or "the
Investment Manager".)
Disposal of Bradford Schools PPPs for c. GBP37m
-- Sale represents an 8% premium to the Company's valuation at 31 March 2023
-- Transaction is accretive to key portfolio metrics and improves portfolio composition
-- Continues HICL's track record of delivering capital growth through active asset recycling
The Board is pleased to announce that HICL has entered into an
agreement to dispose of its entire equity interests in the Bradford
Building Schools for the Future ("BSF") Phase 1 ("Bradford 1") and
Bradford BSF Phase 2 PFI projects ("Bradford 2") (together the
"Projects") for a total consideration of c. GBP37m. Together with
refinancing proceeds received since 31 March 2023, the sale
represents an 8% premium to the Company's last audited valuation at
31 March 2023. Completion is expected in Q4 2023, subject to
customary closing conditions.
HICL initially invested in Bradford 1 in June 2014, and in
Bradford 2 in June 2009, acquiring additional stakes in the
Projects in 2021 through execution of pre-emption rights. The sale
price represents an annualised holding period return for HICL of
11.5% and 14.1%, respectively. This transaction improves portfolio
composition, enhancing key portfolio metrics including total
return, inflation correlation and asset life, and further enhances
HICL's track record of utilising selective asset realisations to
deliver capital growth and market test asset valuations.
Through its ownership, HICL has delivered enhanced community
outcomes while creating value for shareholders. InfraRed actively
managed Bradford 2 through its construction phase and supported the
refinancing of the project in April 2023, sharing outperformance
with the Local Authority. HICL has also supported the delivery of
key operational variations including the addition of 50 Special
Educational Needs and Disabilities places annually for the local
community.
Proceeds from the transaction will reduce the drawn balance on
the Company's Revolving Credit Facility ("RCF"). Following
completion of the disposal, drawings on the RCF are expected to be
c. GBP330m.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"Selective divestments enhance portfolio composition, provide a
valuable source of funding beyond capital markets, and reinforce
the value of HICL's high quality portfolio. This transaction builds
on HICL's long track record of delivering value enhancement through
active asset recycling, and we continue to progress disposal
opportunities where these deliver shareholder value."
-Ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Edward Hunt
Helen Price
Mohammed Zaheer
Brunswick +44 (0) 20 7404 5959 / hicl@brunswickgroup.com
Sofie Brewis
Investec Bank plc +44(0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
Elizabeth Evans
Aztec Financial Services (UK) Limited +44(0) 203 818 0246
Chris Copperwaite
Sarah Felmingham
HICL Infrastructure PLC
HICL Infrastructure PLC ("HICL") 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 over 100 infrastructure investments,
HICL is seeking further suitable opportunities in core
infrastructure, which are inherently positioned at the lower end of
the risk spectrum.
Further details can be found on the HICL website www.hicl.com
.
Investment Manager (InfraRed Capital Partners)
The Investment Manager to HICL is InfraRed Capital Partners
Limited ("InfraRed") which has successfully invested in
infrastructure projects since 1997. InfraRed is a leading
international investment manager, operating worldwide from offices
in London, New York, Seoul and Sydney and managing 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 over
100 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
.
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