Acquisition Activity - UK PPP
19 August 2022
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").
Acquisition Activity - UK PPP
The Board is pleased to announce that HICL has agreed to acquire a minority equity position in Cross London Trains ("XLT") from funds managed by Equitix Investment Management.
XLT is a Public Private Partnership ("PPP") that owns the recently delivered fleet of rolling stock operating on the Thameslink passenger rail route which covers the North-South London commuter rail corridor and serves both Luton and Gatwick airports. Following completion of the transaction, XLT will represent approximately 3%1 of HICL's portfolio by value and will be HICL's third investment in the rail sector, after High Speed 1 and the Dutch High Speed Rail Link.
The fleet has been initially leased under a 20-year availability contract with a revenue underpin from the Secretary of State for Transport. The fleet of 115 Siemens Desiro City Class 700 trains was fully delivered in 2018 and has a strong operational track record. Long term maintenance obligations are retained by the manufacturer, Siemens, under a direct contractual arrangement with the franchise operator, Govia Thameslink Railway (GTR), and therefore sit outside of the project company's delivery obligations.
Completion is expected in Q3 2022 following customary third-party consents. The investment is accretive to key portfolio metrics and will be funded by drawing upon HICL's £730 million corporate credit facility and existing cash resources.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"Cross London Trains is one of the largest rolling stock fleets in the UK. Its electrified trains are modern and efficient, sustainably serving the needs of commuting and leisure travellers alike. This investment further contributes to the delivery of HICL's vision to connect communities through investments in core infrastructure, while delivering long-term income to shareholders."
1 By value using Directors' Valuation of £3,311.0m as at 31 March 2022, less the proceeds of £107.5m from the sale of Queen Alexandra Hospital
-Ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Edward Hunt
Helen Price
Kirsty MacCallum
Teneo +44 (0) 20 7420 3169 / HICL@teneo.com
Haya Herbert-Burns
Matthew Thomlinson
Investec Bank plc +44(0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
Aztec Financial Services (UK) Limited +44(0) 203 818 0246
Chris Copperwaite
Sarah Felmingham
HICL Infrastructure PLC
HICL Infrastructure PLC ("HICL") 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 over 100 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.
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, Seoul 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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