Acquisition

RNS Number : 0120W

HSBC Infrastructure Company Limited

11 November 2010

 



11 November 2010

HSBC Infrastructure Company Limited

HICL completes acquisition of a P3 project

Further to its announcement of 7 October, HSBC Infrastructure Company Limited ("HICL", and together with its subsidiaries the "Group"), the listed infrastructure investment company, announces today that the Group has completed the acquisition of a 50% interest in the North-West Anthony Henday ring road P3 project (the "Project") from a subsidiary of Bilfinger Berger SE ("Bilfinger Berger").

The Project is located in Edmonton, in Alberta, Canada, and comprises the design, build, financing and ongoing operation of a 21 kilometre stretch of the four and six lane ring-road surrounding the city of Edmonton. The Project is currently under construction, with operations scheduled to begin in November 2011. Construction is being carried out by a joint venture comprising Flatiron Constructors Canada Limited, Parsons Overseas Company of Canada Ltd and Graham Infrastructure, itself a JV between Graham Infrastructure LP and Jardeg Construction Service LP. The Project has an availability revenue stream once operational.  The ongoing operations and maintenance will be carried out by Carmacks Maintenance Services Ltd, under a long-term services agreement. The concession contract lasts for 30 years from the beginning of operations, expiring no later than November 2041. Bilfinger Berger will remain a 50% shareholder in the project.

Receipt of the necessary conditions in relation to the acquisition of the M80 motorway DBFO project, the remaining project announced on 7 October, are proceeding to plan and should be acquired before the end of 2010.

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M:Communications	[phone]
Ed Orlebar Andrew Benbow
HSBC Specialist Fund Management Limited	[phone]
Werner von Guionneau Tony Roper Keith Pickard Sandra Lowe

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. Once all 4 acquisitions from Bilfinger Berger are completed, the Company will own a portfolio of 38 infrastructure projects of which 35 will be operational. Based on the 31 March 2010 Directors' valuation plus subsequent acquisitions at cost, on completion of these acquisitions, around 10% of the portfolio by value will be projects under construction.

The Company is seeking further suitable investment opportunities in line with its strategy set out most recently in the Company's results announced on 25 May 2010, and its Investor Update RNS of 23 September 2010.

Further details of the Company can be found on its website www.hicl.hsbc.com

 

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