HICL announces additional investments in 4 existing projects
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 £211m 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 £20m 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 U.K. 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.