HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition from Hochtief Solutions PPP (UK) Limited, a subsidiary of Hochtief AG, of further equity interests in two of its existing projects, namely a 40% interest in the Salford & Wigan Phase 1 BSF Project (“S&W Phase 1”) and a 40% interest in the Salford & Wigan Phase 2 BSF Project (“S&W Phase 2”), for a combined consideration of £16.0m. As a consequence of the acquisitions, HICL now holds an 80% interest in each project.
S&W Phase 1 and S&W Phase 2 are 26-year and 27-year PFI concessions, respectively, to design, build, finance, maintain and operate five new secondary schools in Salford and Wigan, Greater Manchester on behalf of Salford City Council and Wigan Borough Council. S&W Phase 1 was signed in 2010 and has been fully operational since 2011, while S&W Phase 2 was signed in 2011 and has been fully operational since 2013. Construction of both projects was undertaken by Laing O’Rourke Construction, a subsidiary of Laing O’Rourke Plc. The provision of hard and soft FM services, including catering, are undertaken by SPIE Facility Services Limited, a subsidiary of SPIE SA Group.
The acquisitions are funded by drawings under the Group’s revolving credit facility and are in line with the current valuation of similar UK infrastructure projects in the Group’s portfolio.