HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition of an incremental investment in the Hinchingbrooke Hospital PFI Project (“Project”).
The HICL Group and Kajima Partnerships Limited KPL have an existing joint venture holding company (“HoldCo”), in which the HICL Group has a 75% shareholding. Previously, Holdco owned a 50% interest in the Project. Following this transaction, HoldCo now owns 100% of the Project, thereby increasing the HICL Group’s indirect ownership from 37.5% to 75%.
The total consideration paid by the HICL Group for its 75% interest was £5.3m, in line with the current valuation of similar UK social infrastructure projects within its portfolio. Funding for the transaction was from cash resources.
The Project is a 31-year concession which involves the design, construction, financing, maintenance and operation of a two storey 8,500m2 diagnostic and treatment centre situated adjacent to the existing Hinchingbrooke District General Hospital. The Project reached Financial Close in March 2004 and has been fully operational since October 2005.
The provision of soft and hard facilities management services for the Project is undertaken by Kier Facilities Services Limited under a concession life contract.