HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition of a further 12.5% interest in the Southmead Hospital PFI Project (the “Project”) from funds managed by Aberdeen Asset Management Group for a consideration of £25.3m. As a consequence of the acquisition, HICL now holds a 62.5% interest in the Project.
The Project is a £430m, 35 year concession to design, build, finance, operate and maintain an 800-bed acute hospital on a single site at Southmead in North Bristol, on behalf of the North Bristol NHS Trust. Construction is being undertaken by Carillion Construction Limited in two distinct phases. The first phase, comprising the construction of a 102,000m2 new acute hospital, the Brunel Building, was completed in March 2014, with the hospital open for use and fully operational since May 2014. The second phase, which includes the demolition of the old hospital site, is due for completion in May 2016. The provision of hard facilities management services during the operational phase of the Project is subcontracted to Carillion Services Limited under a concession life contract.
This incremental acquisition forms part of the pipeline of anticipated investment opportunities referred to in the Company’s announcement of the result of its tap issue in December 2015 (the “Issue”). The acquisition was funded from proceeds raised pursuant to the Issue, and the price paid for the Project is in line with the current valuation of similar UK infrastructure projects in the Group’s portfolio. Following the acquisition, the Group has a net funding requirement of approximately £3m.
