John Laing Group plc Divestment update (0867U)
March 31 2021 - 1:00AM
UK Regulatory
TIDMJLG
RNS Number : 0867U
John Laing Group plc
31 March 2021
31 March 2021
DIVESTMENT UPDATE
John Laing announces the sale of its interest in the New Royal
Adelaide Hospital
John Laing Group plc ("John Laing" or the "Group") today
announces that it has completed the sale of its 17.26% interest in
the New Royal Adelaide Hospital ("NRAH") to funds managed by AMP
Capital (the "Transaction").
The consideration received for NRAH represents a good uplift to
John Laing's book value of GBP69 million as at 31 December
2020.
The NRAH project represents a mature operational project within
the Group's secondary portfolio, having been operational since
2017, and this Transaction is consistent with the Group's strategy
to realise these types of secondary investments and re-invest the
proceeds in new opportunities in greenfield projects and in
economic infrastructure businesses and platforms. This Transaction
also accelerates and crystalises NAV accretion, some of which was
due over the course of the rest of 2021, and further de-risks the
portfolio.
John Laing's investment in NRAH in 2011 marked the Group's entry
into the Australian PPP market. NRAH was successfully delivered by
Celsus, a consortium in which John Laing holds a 17.26% share. The
availability-based project consisted of the financing, design,
construction and operation of non-clinical services for 35-years,
and the hospital entered into operation in 2017. Since investing in
NRAH in 2011, John Laing has worked closely with its partners on
this AUD1.85 billion project through the construction phase,
successfully bringing it into operation in 2017. Since first
investing in the project in 2011, John Laing has invested GBP37
million in total in NRAH.
Shareholders participate in the success of realisations through
the special dividend, with the Group paying out approximately 5-10%
of gross proceeds received from the sale of investments on an
annual basis. This Transaction further strengthens visibility on
the 2021 special dividend, with total proceeds eligible to be
included in the 2021 special dividend calculation to date amounting
to GBP433 million [1] , consisting of expected proceeds from this
Transaction and the sales of the Australian wind farm portfolio,
the second stage of IEP East and the Rammeldalsberget wind
farm.
Ben Loomes, Chief Executive of John Laing, said:
"We are delighted to have successfully completed the sale of the
New Royal Adelaide Hospital to funds managed by AMP Capital. Our
investment in 2011 marked our entry into the Australian market, and
the hospital today plays an integral part in the community. The New
Royal Adelaide Hospital is an example of how state-of-the art
healthcare infrastructure can improve the provision of essential
services to deliver the best healthcare outcomes. We are proud to
have played a role in bringing the facility into operations working
alongside our partners and the Government of South Australia."
Analyst & investor enquiries:
Kellie McAvoy Head of Investor Relations +44 (0) 7923 249298
Media enquiries:
Tashi Lassalle Director of Communications +44 (0) 7823 249384
Tulchan:
+44 (0) 20 7427
Olivia Peters 5494
About John Laing
John Laing is a leading international investor across a range of
infrastructure sectors. We seek to deliver attractive and
sustainable returns over the medium-term. We are a responsible
investor, committed to delivering critical and enduring
infrastructure which responds to public needs and improves the
lives of the communities we serve.
About NRAH
Located in Adelaide, NRAH is South Australia's flagship
hospital. This 800-bed facility provides a comprehensive range of
complex clinical services and care to an estimated 85,000
inpatients and 400,000 outpatients each year . The hospital is a
state-of-the-art, innovative facility with patient care and
sustainability at the heart of the design. Patient care is enhanced
by the use of natural light, fresh air and single occupancy
overnight rooms. One of Australia's more technologically advanced
healthcare facilities, the hospital integrates innovations across
health, education and research to deliver high quality care. The
site incorporates approximately 3.8 hectares of landscaped
environment, including approximately 1.6 hectares of green space
within the hospital, comprising internal courtyards and sky
gardens.
NRAH has been awarded a 4 Star Green Star by the Green Building
Council of Australia, recognising the hospital's commitment to
environmentally sustainable design and building practices.
ENDS
[1] Expected proceeds reflect latest foreign currency rates and
are adjusted to exclude any cash distributions received from
projects prior to completion and any interest earned on the gross
proceeds.
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