HICL Infrastructure Company Limited – Acquisition of two investments for €21.3m

4 April 2019 Investments

HICL has announced the acquisition of stakes in two Dutch PPP projects form Ballast Nedam, a construction and engineering firm, for total consideration of €21.3m.

The Fund bought a 20% interest in the A9 Gaasperdammerweg Road Project in the Netherlands (the “A9 Project”) and an incremental 25% interest in the Zaanstad Penitentiary Project (the “Zaanstad Project”).

The A9 Project, an availability-based road PPP, has a capital value of €574 million and forms part of the Schiphol – Amsterdam – Almere Corridor Programme from the Ministry of Infrastructure and the Environment which is intended to increase the capacity of the motorways to the south and east of Amsterdam.  Construction and maintenance works are being undertaken by a single joint venture contractor comprising Ballast, Heijmans and Fluor, with construction scheduled to be substantially available in 2018, and fully completed in 2021.  The concession ends in 2038.  Ballast retains a 5% shareholding and provides management services to the project company.

The Zaanstad Project, an availability-based PPP, comprises the construction and operation of a new correctional facility with a capacity of approximately 1,000 detainees.  The facility reached construction completion in March 2016 and maintenance works are being undertaken by Ballast.   Custodial services do not form part of the project’s scope of services.  HICL acquired a 75% interest in the Zaanstad Project in March 2015 and with this incremental investment now owns 100% of the equity and loan stock.

The total consideration of  €21.3m, which was funded from existing cash resources, includes a loan stock obligation  that would be payable once construction of the A9 Project is finished and was provided using the Fund’s existing revolving credit facility.

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