Acquisition

HSBC Infrastructure Company Limited
10 October 2007



10 October 2007


HICL Buys Stakes in Five Education Projects and HSE's Merseyside Headquarters

HSBC Infrastructure Company Limited ('HICL'), the listed infrastructure
investment company, announces today it has completed the acquisition for £30.2
million of 50% interests, in five education projects and the Health and Safety
Executive's Merseyside headquarters, through a new joint venture with Kajima
Partnerships Ltd ('KPL'), a subsidiary of Kajima Corporation ('Kajima').

The acquisition of equity and loan notes is payable in cash from existing
resources and debt facilities. It takes the number of projects in HICL's
portfolio to 27.

These six assets, all Private Finance Initiative ('PFI') accommodation projects
are:

•The headquarters of the Health & Safety Executive ('HSE') in Merseyside

•Ealing Schools, comprising one secondary school and three primary schools

•North Tyneside Schools, comprising one secondary school and three primary 
schools

•Wooldale Centre for Learning, comprising a secondary school with sixth form, 
public library, primary school and nursery

•Haverstock school, a new secondary school in London

•Darlington Schools consisting of an Education Village and one primary school


All six projects were developed by KPL and built by Kajima Construction Europe,
Kajima's construction arm, and are now operational. The facilities management
providers are Honeywell Control Systems Ltd and Reliance Integrated Services
Limited for HSE's headquarters, and MITIE PFI Ltd for the five schools.

KPL will continue the day-to-day management of these projects and there is the
opportunity for HICL to invest, through this joint venture, in other projects
developed by KPL.

Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's Investment
Adviser, said: 'I am pleased to have acquired these six project interests from
KPL. They are high quality assets with a good operational track record. They
complement well the existing investments in the HICL portfolio, and we look
forward to working with KPL to ensure they are well managed and successful.'

Julian Rudd-Jones, Director, Kajima Partnerships Limited, said: 'We are
delighted to have concluded this joint venture transaction with HICL. We look
forward to a successful relationship and the opportunity it gives us and our
partners to grow the business further.'



Ends

M:Communications [phone]
Ed Orlebar

HSBC Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are
predominantly in their operating phase and yielding steady returns. It was the
first infrastructure investment company to be listed on the London Stock
Exchange. Following this acquisition, it owns a portfolio of 27 infrastructure
projects, mostly operational, and seeks to acquire further investment
opportunities.

The Investment Adviser to the Company is HSBC Specialist Fund Management
Limited, whose infrastructure investment team has successfully invested in
infrastructure projects since 1997 and which is part of HSBC Specialist
Investments, the infrastructure and real estate investment arm of the HSBC
Group.

Kajima Corporation

Kajima Corporation is an industry leader in the field of construction and has
extensive expertise in the development, design and construction of a wide
variety of sizeable infrastructure projects. Generating annual consolidated
sales in excess of $16 billion (as at 31 March 2007), Kajima Corporation ranks
as one of the top construction entities in the world. Kajima Corporation
currently maintains a workforce of approximately 9,100 employees at its
headquarters in Tokyo, at its 12 domestic branches and at numerous sales/project
offices throughout Japan. Its global operations network spans more than 20
countries in Asia, Europe, Africa, the Middle East and the United States.


KPL was created specifically to provide Kajima with a vehicle for its
involvement in the UK PFI/PPP market. KPL has utilised, and continues to
exploit, its procurement skills to obtain positions as project sponsor and
project manager on a diverse portfolio of projects. Key sectors in which KPL has
been involved include government offices, education, health, civic facilities
and emergency services (e.g. fire, police and rescue). Kajima is bidding
currently for a number of PFI projects in the UK and is committed to
consolidating its position across its core sectors of education, health and
accommodation.

The Portfolio

•The Ealing Schools PFI project is a four-school education PFI project 
consisting of one secondary school (Brentside) and three primary schools
(Downe Manor, Gifford and Ravenor) in the London Borough of Ealing. The schools
became operational in 2004. The contract has a 27-year operational term that
expires in 2031.

•The North Tyneside Schools PFI project is a four-school education PFI project 
consisting of one secondary school (Burnside) and three primary schools 
(Western, Marine, Coquet) in North Tyneside. The schools became operational in 
2003/2004. The contract has a 30-year operational team that expires in 2034.

•The Wooldale Centre for Learning is an education PFI project consisting of a 
Centre for Learning (CfL) comprising a secondary school with sixth form, public 
library, primary school and nursery on a large site in Northamptonshire. The 
first phase of the CfL (the primary school, library and part of the secondary 
school) became operational in 2004. The contract has a 25-year operational term 
that expires in 2029. The Centre is intended to provide a community hub and a 
lifelong learning resource centre. The greenfield site adjoins a large area of 
new residential development to the south of Northampton city centre.

•The headquarters of the Health & Safety Executive ('HSE') in Merseyside is a 
four-storey office building that serves and houses 1,500 employees. The building 
became operational in 2005. The contract has a 30-year operational term that 
expires in 2035. It is part of a long-term redevelopment effort supported by the 
local authorities.

•The Haverstock school PFI project is a single school education PFI project 
consisting of a new secondary school on an existing school site on Haverstock 
Hill, Camden. Phase 1 of the new school became operational in 2004 with 
subsequent phases handed over one year later. The contract has a 26-year 
operational term that expires in 2030.

•The Darlington Schools PFI project is a four-school education PFI project 
consisting of an Education Village and one primary school. The facilities became 
available on a phased basis in 2005 and 2006. The contract has a 25-year 
operational term that expires in 2030. The Education Village represents the 
consolidation of Springfield Primary School, Haughton Community School and 
Beaumont Hill Special School. It successfully combines existing nursery, 
primary, secondary and special education needs into a single cohesive campus 
developing a unique approach to inclusive education in Darlington.




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