Disposal of University of Sheffield Accommodation
13 November 2023
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 Announces Disposal of University of Sheffield Accommodation
for a consideration of c. £18m
· Sale represents a small premium to the Company's valuation at 31 March 2023
· Transaction is accretive to key portfolio metrics and improves portfolio composition
· Continues HICL's track record of delivering capital growth through active asset recycling
The Board is pleased to announce that HICL has entered into an agreement to dispose of its entire equity interests in the University of Sheffield Accommodation Project for a consideration of c. £18m. Proceeds from the sale represent a small premium to the Company's last audited valuation at 31 March 2023, which has been reflected in the recently published 30 September 2023 NAV. This transaction is further evidence of the value of HICL's portfolio and the disconnect between public and private market valuations for high-quality infrastructure assets.
Completion is expected before the end of the year, subject to customary third-party consents. Proceeds from the transaction will be used to reduce the balance on the Company's £650m Revolving Credit Facility ("RCF"). Following completion of all announced disposals, drawings on the RCF are expected to be c. £115m.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"This latest transaction takes the total number of disposals for the year to nine, evidencing our active approach to asset recycling and the Company's ability to reduce debt in a value accretive manner, notwithstanding wider macroeconomic volatility."
-Ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Edward Hunt
Helen Price
Mohammed Zaheer
Brunswick +44 (0) 20 7404 5959 / hicl@brunswickgroup.com
Sofie Brewis
Investec Bank plc +44(0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
Elizabeth Evans
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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