Acquisition

RNS Number : 3689V

HSBC Infrastructure Company Limited

09 July 2009

 



HSBC Infrastructure Company Limited

9 July 2009

HICL Acquires 50% Stake in Highland Schools PPP Project for £16.8 million 

HSBC Infrastructure Company Limited ('HICL'), the listed infrastructure investment company, announces today it has completed the acquisition of a 50% interest in the second Highland Schools PPP project from Morrison Education (Highland) Limited for a consideration price of £16.8 million.

The price paid is in line with the current valuation range of similar PPP investments in the Company's portfolio. The acquisition of equity and loan notes is payable in cash from existing resources. It follows last month's acquisition of a 30% interest for £6.8 million in the Renfrewshire Schools project of 10 primary and secondary schools across the county. 

The 30-year, all new build concession, comprises five primary schools, three secondary schools, a combined primary and secondary school, and a special needs school. Construction has been completed in stages and is due to be fully completed in the autumn. The construction contractor is Morrison Construction. Construction commenced in 2006 on the 11 new schools and community facilities built through The Highland Council's second Public Private Partnership (PPP) Programme. Facilities Management is the responsibility of Morrison Facilities Services and the project is financed through long term fixed-rate guaranteed senior secured bonds and a European Investment Bank loan.

All the schools have been designed in consultation with the community to include a range of facilities which are available to the public. These facilities include library provision, sports & recreational facilities and community meeting rooms. The Project was awarded a 'Highly Recommended Award for Community Involvement' at the 2008 PPP Annual Awards.

Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's Investment Adviser, said: 'We are pleased to have the opportunity to acquire this grouped schools project, which is nearing construction completion and builds on our existing expertise in the education sector in Scotland. We look forward to working with The Highland Council and our supply chain partners to ensure this project continues to be well managed for the benefit of the local community.'

Ends

M:Communications [phone]/1559

Ed Orlebar/James Hill

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. With this acquisition it now owns a portfolio of 30 infrastructure projects. None of the investments in the portfolio is a demand-based income project (whose revenue is dependent on the amount of usage).

The Company continues to seek further suitable investment opportunities in line with its strategy set out in the Company's results announced on 28 May.

Further details of the Company can be found from its web site www.hicl.hsbc.com

Investment Adviser

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. HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

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