Investment in Birmingham New Hospitals PFI Project
21 May 2012
HICL Infrastructure Company Limited
Acquisition of an Investment in the Birmingham New Hospitals PFI Project for £34.6m
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 acquired a 30% equity and loan note interest (the "Interest") in the Birmingham New Hospitals PFI Project (the "Project") from Royal Bank Project Investments Limited.
The Project is a 40 year concession to design, construct, finance and maintain a new acute hospital and six new mental health facilities in Birmingham for the University Birmingham Hospitals NHS Foundation Trust and the Birmingham and Solihull Mental Health NHS Trust (the "Trusts") respectively.
The new acute hospital and mental health facilities were built by a joint-venture between Balfour Beatty Construction and Hayden Young under a £553 million fixed-price construction contract. The new buildings have been built in phases over 5 years. The mental health facilities were handed over in 2008 and provide for 235 beds across 6 new psychiatric facilities. The acute hospital was substantially completed and handed over in September 2011, with the remaining works due to be finished in August 2012. The hospital provides for 1,213 inpatient beds and 30 operating theatres. Balfour Beatty Workplace is providing hard facilities management services to the Project.
The total consideration paid by the Group is £34.6m, which is in line with the current valuations of similar UK PFI projects in the Group's portfolio.
James O'Halloran, Investment Director, Infrastructure, InfraRed Capital Partners Limited (HICL's Investment Adviser) said:
"We are delighted to acquire this investment in this Project in which we have been involved since contract signing in 2006. The acute hospital delivered by the Project is one of the largest single hospitals in Europe and we look forward to working with all stakeholders to ensure that the final phase of construction is completed successfully and the Project continues to perform well."
Enquiries
Tulchan Communications +44 (0) 20 7353 4200
Ed Orlebar
Rebecca Scott
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Tony Roper
Keith Pickard
Robin Hubbard
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 71 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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