Conditional Acquisition of a new investment

RNS Number : 7970Q

HICL Infrastructure Company Ld

02 December 2016

 

2 December 2016

HICL Infrastructure Company Limited

Conditional Acquisition of a new US$166m investment

HICL Infrastructure Company Limited ("HICL" or the "Company"), the listed infrastructure investment company advised by InfraRed Capital Partners Limited ("InfraRed"), is pleased to announce that it has reached an agreement to acquire a 33.3% equity interest in Northwest Parkway (the "Project"), a toll-road located in the Denver metropolitan area of Colorado, U.S.A.  HICL is part of a consortium alongside DIF Infrastructure IV and Northleaf Capital Partners, which has agreed to acquire a 100% equity interest in the Project from Brisa, a Portuguese toll-road operator.

The Project is a 99-year concession, signed in 2007, to operate and maintain a 14km section of the beltway system extending around Denver.  The Project has good traffic history as the road was opened in 2003 and connects with several toll and non-toll highways, including E-470, I-25, U.S. 36 and U.S. 287, providing convenient access to residential and commercial centres in the region.  Project revenues are generated by tolls through an all-electronic tolling system.  The counterparty to the concession is the Northwest Parkway Public Highway Authority.

Completion is subject to a limited number of conditions and is expected in the first half of 2017.  HICL's share of the consideration is approximately US$166 million, which will be paid at completion, funded by cash and drawing under the Group's enlarged revolving debt facility. With completion of the acquisition not due until the first half of 2017, the HICL Group's funding surplus of approximately £11m remains unchanged.

Tony Roper, Director, InfraRed Capital Partners Limited, said:

"We are delighted to have signed the agreement to acquire a substantial interest in the Northwest Parkway toll-road, which is strategically located in a dynamic region of Colorado, forming part of the ring road around Denver.  When it completes, this will be HICL's first investment in the USA.

The Project is consistent with the stated strategy and supports HICL's disciplined investment proposition, which is to produce long-term income for shareholders from a portfolio of infrastructure investments that is positioned at the lower end of the risk spectrum.  The Company's acquisition strategy targets suitable opportunities in three market segments, including demand-based assets like Northwest Parkway.  With a 90-year concession life remaining and strong inflation-linkage, this asset is well-placed to deliver attractive returns."

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This announcement contains Inside Information.

Enquiries

InfraRed Capital Partners Limited                            [phone]

Tony Roper
Keith Pickard
Harry Seekings

Tulchan Communications                                            [phone]

David Allchurch
Latika Shah

Canaccord Genuity Limited                                         [phone]

Dominic Waters
Neil Brierley
Will Barnett
David Yovichic

HICL Infrastructure Company Limited

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "HICL Group") is a long term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange. With a current portfolio of 113 infrastructure investments (including the A63 and Northwest Parkway commitments with limited conditions to completion), HICL is seeking further suitable opportunities, which are positioned at the lower end of the risk spectrum, in three target markets segments: PPPs; regulated assets; and demand-based assets.

Further details can be found on the HICL website, www.hicl.com.

Investment Adviser

The Investment Adviser to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney. With over 120 professionals it manages in excess of US$9bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.

The infrastructure investment team at InfraRed consists of 60 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.

InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.

Further details can be found on InfraRed's website, www.ircp.com.

 

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