HICL Infrastructure PLC Portfolio Disposal for c. GBP204m (8883N)
September 28 2023 - 1:00AM
UK Regulatory
TIDMHICL
RNS Number : 8883N
HICL Infrastructure PLC
28 September 2023
28 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".)
Portfolio Disposal for c. GBP204m
-- Sale of five UK assets at a premium to HICL's 31 March 2023 valuation
-- c.GBP310m of accretive disposals announced since March 2023
-- Reduces revolving credit facility drawings to c. GBP130m at completion
The Board is pleased to announce that HICL has agreed to dispose
of a portfolio of five assets to John Laing, an international core
infrastructure investor. The portfolio is made up of HICL's entire
equity interest in four UK PPP projects; Queens (Romford) Hospital,
Oxford John Radcliffe Hospital ("OJR"), Priority Schools North East
Batch and South Ayrshire Schools, in addition to half of its
investment in the Hornsea II OFTO(2) .
The total consideration for the transaction is c. GBP204m, which
represents a small premium to the Company's last audited valuation
for the relevant assets at 31 March 2023. This accretive
transaction evidences the robustness of the Company's net asset
value, improves portfolio construction, and enhances the key
metrics of yield, inflation correlation and asset life. The partial
sell-down of the recently acquired Hornsea II OFTO was envisaged at
the time of acquisition and demonstrates responsible balance sheet
management against a challenging market environment.
Completion of all five disposals is expected before HICL's 31
March 2024 year-end. The transaction proceeds will reduce the
drawings on the Company's Revolving Credit Facility to c.
GBP130m.
The largest of the five assets(1) , OJR, was developed by
Carillion plc under the private finance initiative and HICL
acquired its interests in 2010 and 2012. Following the liquidation
of Carillion in 2018, InfraRed's asset management team led the
project restructuring to successfully resolve all outstanding
contractual obligations with the NHS client, replace the facilities
management service providers and subsequently remediate outstanding
defects. As a result of HICL's ownership, the project has been
stabilised and de-risked, and maintains strong relationships with
key stakeholders.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"This accretive sale of a representative cross-section of HICL's
portfolio further demonstrates the disconnect between public and
private market valuations for high-quality infrastructure assets.
Since 31 March 2023 the Company has realised over GBP300m from
asset disposals demonstrating effective capital recycling while
enhancing key portfolio metrics and reducing gearing."
(1) Using Directors' valuation as at 31 March 2023
(2) Post completion, HICL will retain a 37.5% equity stake in
Hornsea II OFTO
-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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END
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