TIDMHICL
RNS Number : 1545L
HICL Infrastructure Company Ld
14 July 2017
14 July 2017
HICL Infrastructure Company Limited
Acquisition of a new investment
HICL Infrastructure Company Limited ("HICL" or the "Company"),
the listed infrastructure investment company advised by InfraRed
Capital Partners Limited ("InfraRed"), is pleased to announce that
it has signed an agreement to acquire a 35 per cent equity interest
in the entities that comprise the High Speed 1 Project ("HS1").
HICL is a member of a consortium, alongside funds managed by
Equitix Investment Management Limited and third party funds managed
by InfraRed, which has agreed to acquire 100 per cent of HS1 from
Borealis Infrastructure (on behalf of OMERS Administration
Corporation) and Ontario Teachers' Pension Plan Board. The members
of the consortium will acquire interests in HS1 pro rata by
reference to their respective shareholdings, with HICL and the
Equitix funds each acquiring 35 per cent, and the third party
InfraRed funds acquiring the balance of 30 per cent.
HS1 is a strategic asset in the UK and operates the country's
only high-speed rail link, including four stations and associated
infrastructure. The rail link runs for approximately 109km between
London St Pancras International station and the Channel Tunnel. In
2016, it carried over 20 million passengers, providing critical
transport infrastructure for commuters in South East England and
connecting London to several major European cities. HS1's revenues
are generated from domestic and international train journeys;
unregulated activities, principally comprising retail leases at St
Pancras International; and regulated activities such as maintenance
and operations. The acquisition is consistent with HICL's strategy
of investing in assets that are positioned at the lower end of the
risk spectrum.
HICL's share of the consideration amounts to up to GBP320
million. Completion will occur following satisfaction of provisions
in the HS1 concession agreement relating to a change of control of
HS1. Following completion, HICL intends to bring in minority
co-investors managed by InfraRed representing up to GBP120 million
of its commitment, subject to the terms of the concession
agreement. This is consistent with its strategy of partnering with
aligned co-investors on larger transactions.
The investment will be funded using HICL's existing cash
resources and drawings from its revolving credit facility.
Following completion of the acquisition, and on the basis that HICL
has brought in co-investment of up to GBP120 million of its equity
interest, HICL will have a net funding requirement of approximately
GBP140m.
Harry Seekings, Director (Infrastructure) at InfraRed Capital
Partners Limited, said:
"HS1 is a strategically important, core UK infrastructure asset
and InfraRed is delighted to have secured this opportunity for
HICL. The investment is in line with HICL's stated acquisition
strategy and is expected to be accretive to the existing portfolio,
in particular with regard to yield and inflation correlation.
"Following the completion and finalisation of co-investment,
approximately 16 per cent of the HICL portfolio will be invested in
demand-based assets with returns that are correlated to wider
economic activity. This remains within the Company's 20 per cent
limit for investments of this nature.
"HS1 has a strong track record, which is underpinned by
operational excellence, and we look forward to working with the
management team to support the continued delivery of a high-quality
service for HS1's customers."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
-ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Harry Seekings
Keith Pickard
Tony Roper
Tulchan Communications +44 (0) 20 7353 4200
David Allchurch
Latika Shah
Canaccord Genuity Limited +44 (0) 20 7523 8000
David Yovichic
HICL Infrastructure Company Limited
HICL Infrastructure Company Limited ("HICL" or the "Company",
and together with its subsidiaries the "HICL Group") 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 116 infrastructure
investments, HICL is seeking further suitable opportunities, which
are positioned at the lower end of the risk spectrum, in three
target markets segments: PPPs; regulated assets; and demand-based
assets.
Further details can be found on the HICL website,
www.hicl.com.
Investment Adviser (InfraRed Capital Partners)
The Investment Adviser to HICL is InfraRed Capital Partners
Limited ("InfraRed") which has successfully invested in over 200
infrastructure projects since 1997. InfraRed is a leading
international investment manager focused on infrastructure and real
estate. It operates worldwide from offices in London, Hong Kong,
New York, Seoul and Sydney. With over 120 professionals it manages
in excess of US$9bn of 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 60
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.
Equitix
Equitix is a leading developer, investor and long-term fund
manager of core infrastructure assets, predominately in the UK. It
has over GBP2billion of equity under management and invests for the
long-term in investments with stable, predictable yields.
High Speed 1
HS1 is a modern high-speed rail line allowing speeds of up to
300 kph and 230 kph for international services and domestic
services, respectively. HS1 connects at several points to the
classic rail network and provides passenger connectivity with other
public transport options.
Domestic passenger services are operated by London and South
Eastern Railway Limited, which currently holds the South Eastern
franchise. LSER has delivered >10% passenger growth since the
start of high speed domestic operations in December 2009.
International passenger services have been operated by Eurostar
International Limited for over 20 years with 10 million passengers
p.a. on its two core routes to and from Paris and Brussels, which
account for 97% of passenger demand. Newer routes include
Marseilles (launched May 2015) and Amsterdam (launching December
2017).
HS1's four rail stations generate income through the provision
of unregulated activities, comprising retail leases and car parking
facilities. St Pancras, located in Central London, is the flagship
station generating 98% of the Company's total retail income. St
Pancras has 108,100 sq. ft. of prime retail space and attracts
c.50million visitors a year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUSSORBBABAAR
(END) Dow Jones Newswires
July 14, 2017 09:50 ET (13:50 GMT)
Hicl Infrastructure (LSE:HICL)
Historical Stock Chart
From Apr 2024 to May 2024
Hicl Infrastructure (LSE:HICL)
Historical Stock Chart
From May 2023 to May 2024