HICL acquires stake in UK Hos
HSBC Infrastructure Company Limited
22 August 2008
HICL acquires stake in UK Hospital PFI project
HSBC Infrastructure Company Limited ('HICL' or the 'Company'), the listed infrastructure investment company, announces today it has completed the acquisition of a 50% interest in the Hospital Company (Oxford John Radcliffe) Holdings Ltd from Carillion PLC for a consideration price of £18 million.
The price paid is in line with the current valuation range of similar UK PFI investments in the Company's portfolio.
The acquisition of equity and loan notes is payable in cash from existing resources. It takes the number of projects in HICL's portfolio to 28.
The project was developed and built by Carillion and has been operational since December 2006. Carillion continues to provide facilities management services for the project. The Royal Bank of Scotland is the 50% co-shareholder in the project.
Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's Investment
Adviser, said: 'I am pleased to have acquired this project from Carillion. It is a high quality asset with a good operational track record. This new investment will be a good addition to the existing HICL portfolio and increase the number of investments in health schemes to seven. We look forward to working with both Carillion and RBS to ensure this project is well managed and successful.'
Ends
M:Communications +44 (0)20 7153 1523
Ed Orlebar
Tilly von Twickel
HSBC 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. With this acquisition it now owns a portfolio of 28 infrastructure projects which are all operational. None of the investments in the portfolio is a demand-based income project (whose revenue is dependent on the amount of usage, such as cars using a toll road).
The Company is seeking further suitable investment opportunities which fit its Investment Policy.
Further details of the Company can be found from its web site www.hicl.hsbc.com
The Company successfully raised £103.6m in May via a C-Share issue, which together with the Company's debt facilities, has given the Company's financial resources to acquire further, suitable investments when the opportunities arise.
Investment Adviser
The Investment Adviser to the Company is HSBC Specialist Fund Management Limited, whose infrastructure investment team has successfully invested in infrastructure projects since 1997 and which is part of HSBC Specialist Investments, the infrastructure and real estate investment arm of the HSBC Group. HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.
This information is provided by RNS
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