Acquisition

RNS Number : 5944O

HSBC Infrastructure Company Limited

01 July 2010

 



1 July 2010

HSBC Infrastructure Company Limited

HICL acquires 74.9% stake in Queen Alexandra Hospital for £46.4 million

HSBC Infrastructure Company Limited ("HICL" or the "Company"), the listed infrastructure investment company, announces today it has completed the acquisitions of two interests in the Queen Alexandra Hospital PFI project in Portsmouth (the "Project").  The Company has acquired a 50% interest and a 24.9% interest from the two shareholders in the Project.  Total consideration for these two interests is £46.4 million.

The price paid is in line with the valuation of similar PFI investments in the Company's portfolio.

The acquisition of equity and loan notes is payable in cash from existing resources. It takes the number of infrastructure investments in HICL's portfolio to 34.

The completed hospital has 1,026 inpatient beds, 34 neonatal intensive care cots, 3 endoscopy suites and 20 main operating theatres. The concession contract runs until December 2040.

The new hospital buildings were developed and built by Carillion Construction Ltd, a subsidiary of Carillion. The majority of the new facilities have been operational since June 2009, with final construction completed last month. A subsidiary of Carillion provides facilities management services to the project under a long-term services agreement.

Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's Investment Adviser, said: "The team is pleased to have acquired these investments in this PFI hospital asset.  We look forward to working with all stakeholders to ensure this project is well managed and successful. This new investment is a good addition to the existing portfolio and increases the number of investments in healthcare projects to nine."

Ends

M:Communications	[phone]
Ed Orlebar Andrew Benbow
HSBC Specialist Fund Management Limited	[phone]
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. With this acquisition it now owns a portfolio of 34 infrastructure projects of which 33 are operational.  None of the investments in the portfolio is a demand-based income project (whose revenue is dependent on the amount of usage).

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.

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.  It was announced on 4 June 2010 that heads of terms had been agreed with HSBC for the business to become an affiliate of HSBC (from its current status of 100%-owned subsidiary). HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

 

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