Additional investment in four existing projects
28 August 2012
HICL Infrastructure Company Limited
Additional investments in four existing projects for £10m
HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has agreed to buy additional equity and loan note interests in the Romford Hospital, Fife Schools, Exeter Crown Courts and Stoke Mandeville Hospital PFI Projects from subsidiaries of Sodexo SA ("Sodexo"). This takes the Group's total interests in these projects to 66.67% on Romford Hospital, 44.4% on Pinnacle Schools and 100% on both Exeter Crown Courts and Stoke Mandeville Hospital.
The Romford project involves the design, build and finance of a new hospital - the Queen's Hospital - in Romford, Essex, followed by the maintenance of the hospital and the provision of non-clinical services and a Managed Equipment Service for a term of 36 years that ends in 2040. The £211 million construction was completed in October 2006 by Bovis Lend Lease Limited. Soft and Hard Facilities management is the responsibility of Sodexo Limited and the Medical Equipment Services are provided by Siemens plc.
The Fife schools PFI project comprises two secondary and one primary school in Scotland and is currently in its fifth year of operation. Construction was carried out by Sir Robert McAlpine and the Facilities Management contract is with Sodexo.
The Stoke Mandeville hospital project was completed in 2006 by an Alfred McAlpine/Haden joint-venture with a capital expenditure of over £40m. The facility provides clinical and non-clinical services focused around day care and ambulatory care. Facility management services are provided by Sodexo and include building maintenance, catering, cleaning, linen, portering, pest control and car-park management.
The Exeter Crown Courts project is a 32 year concession, commissioned by the Department of Constitutional Affairs, to build and service a new crown and county court building in Exeter. Capital expenditure was approximately £20 million and construction works were completed in October 2004. Facilities management services are also provided by Sodexo.
The total consideration is £10m and is in line with the current valuation of similar UK PFI projects in the Group's portfolio. The acquisition will be funded from the Group's cash resources and is in line with the Group's strategy to increase its shareholdings in existing infrastructure investments.
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Tony Roper
Keith Pickard
Robin Hubbard
Tulchan Communications +44 (0) 20 7353 4200
Ed Orlebar
Rebecca Scott
Canaccord Genuity Limited +44 (0) 20 7523 8000
Dominic Waters
Neil Brierley
Will Barnett
David Yovichic
HICL Infrastructure Company Limited
The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange. It currently owns a portfolio of 73 infrastructure investments, all of which are PFI/PPP/P3 projects, and is seeking further suitable investment opportunities which fit its stated Investment Strategy.
Further details of the Company can be found on its website www.hicl.com.
Investment Adviser
The Investment Adviser to the Company is InfraRed Capital Partners Limited, whose infrastructure investment team has successfully invested in infrastructure projects since 1997.
InfraRed Capital Partners Limited is authorised and regulated by the Financial Services Authority.
This information is provided by RNS
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