£52m incremental stake in Cross London Trains

HICL Infrastructure PLC

30 March 2026

 

30 March 2026

HICL Infrastructure PLC

"HICL" or "the Company" and, together with its subsidiaries, "the Group", the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited ("InfraRed" or "the Investment Manager").

HICL acquires additional stake in Cross London Trains for c.£52m

·	Additional 6.65% interest acquired in Cross London Trains ("XLT") for c.£52m
·	Increases HICL's total interest to 13.13%, improving governance position and board representation at the portfolio company level
·	Additional investment expected to add in excess of 1.0p to NAV per share on completion of the transaction
·	Expected return and yield make this transaction an appropriate deployment of capital in line with HICL's strategic priorities
·	Continued focus on disciplined, balanced capital allocation, consistent with HICL's active approach to portfolio evolution
·	HICL has also increased the rate of share repurchases following the recently announced A63 Motorway disposal, recognising the prevailing share price discount to NAV

Mike Bane, Chair of HICL, said:

"This investment demonstrates the Board's disciplined and balanced approach to capital deployment. Increasing our stake in XLT enhances HICL's governance position in a high‑quality, operational asset and supports long‑term NAV per share growth. The transaction is also expected to deliver compelling NAV accretion and incremental income."

Edward Hunt, Head of Core Infrastructure Funds at InfraRed, said:

"This transaction reflects InfraRed's ability to act nimbly and decisively as opportunities arise organically in the Company's portfolio, a proven source of value for HICL. By increasing the Company's ownership and governance influence, we are well positioned to continue generating value from a resilient, high‑performing asset within a critical part of the UK's transport network."

The Board of HICL is pleased to announce that the Company has agreed to acquire a further 6.65% interest in XLT for approximately £52 million.

XLT owns and originally delivered the fleet of 115 Siemens Desiro City Class 700 electric trains operating on the Thameslink passenger rail route. This is one of the UK's most important transport corridors, covering the North-South London commuter axis and serving major hubs including St Pancras International, Gatwick Airport, and Luton Airport.

The fleet was initially leased in 2016 under a 20-year availability contract with a revenue underpin from the Secretary of State for Transport. At the end of this period, ownership will remain with shareholders, and the fleet is expected to be re-leased on commercial terms. Long-term maintenance obligations are retained by the manufacturer, Siemens, under a direct contractual arrangement with the operator, Govia Thameslink Railway (GTR), and therefore sit outside of the project company's delivery obligations. The rolling stock is fully operational, bespoke to the route's infrastructure and has demonstrated a strong performance track record.

The acquisition increases HICL's total economic interest in XLT to 13.13%, strengthening the Company's governance position and board representation at the portfolio company level. This enhanced influence supports InfraRed's active asset management approach and creates further opportunity to drive long‑term value from a high‑quality, operational asset.

The attractive price at which the stake has been acquired is expected to increase the Company's NAV per share by at least 1.0p following completion of the transaction. The price reflects the minority position being divested and HICL's rights through its existing shareholding in XLT. Consistent with the Board's disciplined approach to capital allocation, the investment was assessed against alternative uses of capital, including the repurchase of the Company's shares. The Board is satisfied that the expected return and yield from this incremental investment, and the opportunity afforded to increase HICL's investment and governance rights in a high-performing critical asset, make this an appropriate deployment of capital in line with HICL's strategic priorities.

Completion of the transaction is expected before the end of June 2026, subject to customary third-party consents.

The acquisition will be funded from the proceeds of recently completed disposals. The Company continues to benefit from a number of live capital rotation opportunities as part of HICL's active approach to enhancing portfolio composition and long-term shareholder returns; and the Board will continue to evaluate such opportunities on a case-by-case basis within the broader context of its capital allocation considerations.

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Enquiries

InfraRed Capital Partners Limited                  [phone] / [e-mail]

Edward Hunt

Mark Tiner

Mohammed Zaheer

Brunswick                                                           [phone] / [e-mail]

David Litterick

Investec Bank plc                                              [phone]

David Yovichic

Denis Flanagan

RBC Capital Markets                                         [phone]

Matthew Coakes

Elizabeth Evans

Aztec Financial Services (UK) Limited           [phone]

Chris Copperwaite

Magdala Mullegadoo

HICL Infrastructure PLC

HICL Infrastructure PLC ("HICL") is a leading long-term investor in infrastructure assets, with a diversified portfolio of predominantly operational investments generating stable, inflation-linked cashflows. Since becoming the first infrastructure investment company to be listed on the London Stock Exchange, HICL has established a strong track record of investing in essential assets that support the delivery of public services and long‑term value creation.

The Company's investment strategy is focused on delivering a total return for shareholders consisting of sustainable dividend growth and long‑term NAV accretion, enabled by highly visible cashflows, long asset lives and active portfolio management. HICL's portfolio is positioned towards the lower end of the infrastructure risk spectrum and is underpinned by disciplined capital allocation, strong cash generation and a self‑funding model.

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

Investment Manager (InfraRed Capital Partners)

The Investment Manager to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in infrastructure projects since 1997. InfraRed is a leading international investment manager, operating worldwide from offices in London, New York, Miami, Seoul, Madrid, Frankfurt and Sydney and managing 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 over 100 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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