HICL Infrastructure Company Limited - New investment and an incremental acquisition

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HICL Infrastructure Company Limited (the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce a new investment in the form of a 10% interest in the N17/N18 Gort to Tuam PPP Scheme (the "N17/N18 Project"). 

The project is located in the Republic of Ireland, and the investment is made alongside a consortium comprising the Marguerite Fund, John Sisk and Son (Holdings) Limited, Lagan Projects Investments Limited, Roadbridge and Strabag SE. The Company is also pleased to announce the acquisition of a further 16.5% interest (equity only) in the Miles Platting Social Housing PFI Project ("Miles Platting Project") in Manchester from Adactus Housing Association Limited. 

-      The N17/N18 Project, which has just reached financial close, involves the financing, design, construction and operation of a new 57km dual carriageway section of the N17/N18 near Galway for the National Roads Authority of Ireland (the "NRA"). Construction of the new road will commence in June 2014 and is expected to be completed in November 2017. The construction works will be undertaken by a joint venture of John Sisk and Son (Holdings) Limited, Lagan Construction Group Limited, Roadbridge and Strabag AG with the subsequent routine maintenance of the road being undertaken by a joint venture of Lagan Operations and Maintenance Limited and A-Way Infrastructure Project Development and Operations GmbH (Strabag). During the 25 year operating period of the concession the N17/N18 Project will receive availability payments from the NRA.

The Group's financial commitment to the N17/N18 Project comprises an obligation to subscribe for 10% of shareholder loans at the end of the construction works and a conditional commitment to acquire a further 32% interest in early 2019. 

-      The Miles Platting Project is a 30 year concession, to redesign and refurbish approximately 1,500 occupied properties. It reached financial close in 2007 and construction, which was undertaken by Lovell Partnerships Limited (a Morgan Sindall subsidiary), was completed in 2012. Adactus Housing Association Limited will continue to provide the on-going management and maintenance of the properties. 

The total investment for the initial 10% interest in the N17/N18 Project and the additional 16.5% interest in the Miles Platting Project was approximately £5.1m. 

David Foot, Director, Infrastructure, at InfraRed Capital Partners Limited (the Company's Investment Adviser) said: 

"We are pleased that InfraRed's relationship with Strabag has given the Company the opportunity to invest in a new road project in Ireland supporting the development of the country's infrastructure. This is part of the Group's stated strategy of holding a small proportion of investments in their construction phase.We look forward to working with our consortium partners in constructing the new road and achieving successful operations. We are confident in our ability to increase the Group's shareholding in the N17/N18 Project in due course."