Acquisition

RNS Number : 7194J

HSBC Infrastructure Company Limited

06 April 2010

 



HSBC Infrastructure Company Limited

6 April 2010

Acquisition of a stake in the Newcastle City Libraries PFI project

HSBC Infrastructure Company Limited ("HICL"), the listed infrastructure investment company, announces today it has completed the acquisition of a 50% interest in the Newcastle City Libraries PFI project for £3.0 million (the 'Newcastle acquisition') from Kajima Partnerships Limited ("KPL").

The project is a £30 million, 25 year concession to finance, construct and maintain the new city centre library in Newcastle and an additional satellite library in High Heaton, both in the North East of the UK, commissioned by Newcastle City Council. Construction was undertaken by Tolent Construction Limited and was completed in March 2009, since which time the libraries have been running successfully with record visitor numbers.  Maintenance and other facilities management services are provided by Integral UK Limited under a long term contract. KPL will retain a 50% interest in the project.

Keith Pickard, Portfolio Director, HSBC Specialist Fund Management Limited, HICL's Investment Adviser, said: "We are pleased to announce the acquisition of this award winning PFI project, which brings to seven the projects we jointly own and manage with KPL.  We look forward to working with them and Newcastle City Council for the continued success of the project."

Julian Rudd-Jones, Managing Director, Kajima Partnerships Limited, said:  "We are delighted to be extending our investment partnership with HICL.  This transaction enables us to free up capital for further projects whilst remaining fully involved with these excellent public facilities of which we are very proud."

Ends

HSBC Specialist Fund Management Limited	020 7991 8888
Tony Roper Keith Pickard Sandra Lowe

Collins Stewart Europe Limited	020 7523 8000
Robbie Robertson David Yovichic
Oriel Securities Limited	020 7710 7600
Tom Durie Emma Griffin
M:Communications	020 7153 1523
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. The Company now owns a portfolio of 33 infrastructure projects, of which 32 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 12 November 2009.

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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