Acquisition Activity

RNS Number : 5458R

HICL Infrastructure PLC

08 November 2021

 

8 November 2021

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").

Acquisition Activity

HICL is pleased to announce that it has acquired, indirectly, a 33.3% interest in Road Management Group (RMG), a holding company which comprises two UK shadow toll roads (the "Projects"): the A417/A419 Swindon-Gloucester and the A1(M) Alconbury-Peterborough. The interest was acquired from Abertis Infraestructuras, S.A. for a combined consideration of up to £34.4m. This investment will be funded by HICL's Revolving Credit Facility.

The Projects are both 30-year shadow toll PFI concessions for the design, construction, financing, operation, and maintenance of the roads, which reached Financial Close in March 1996 and construction completion in 1998. The client is National Highways and operation and maintenance of both roads is undertaken by Ringway Limited, a subsidiary of Vinci Group. These roads are strategically located and benefit from extensive traffic history which significantly de-risks the variable component of revenue. Both roads have performed resiliently through the Covid-19 pandemic and are well positioned for further recovery. Following this acquisition, the proportion of demand-based assets in the portfolio with correlation to GDP remains below 20%.

Edward Hunt, Director at InfraRed said:

"We are delighted to be acquiring a stake in two high quality UK road projects which provide critical transport links to their respective communities. Both projects have predictable revenues, have been acquired on an ungeared basis and are expected to be accretive to portfolio yield and total return. "

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Enquiries

InfraRed Capital Partners Limited                               [phone] / [e-mail]

Harry Seekings

Edward Hunt

Helen Price

Kirsty MacCallum

Teneo     [phone]/ [e-mail]

Haya Herbert-Burns

Matthew Thomlinson

Jesse Mathews

Investec Bank plc   [phone]

David Yovichic

RBC Capital Markets                                                       [phone]

Matthew Coakes

Aztec Financial Services (UK) Limited                         [phone]

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 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, New York, Mexico City, Seoul and Sydney. With over 170 professionals, it manages 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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