HICL acquires 75% stake in Dutch project for £8m

1st Apr 2015 09:14

The HICL Infrastructure Company has announced a new €11.5m (£8.3m) for a 75% interest in the Zaanstad Penitentiary Institution project in the Netherlands from a subsidiary of Ballast Nedam BVThe deal, which was funded by the group's revolving credit facility, includes an investment in shares and a loan stock subscription payable upon completion of construction.Under the agreement, HICL will build and operate the penitentiary for 25 years. The FTSE 250 infrastructure group said construction had begun on the site in 2014 and the project was scheduled to be operative by March next year.In a statement released on Wednesday, the company said the acquisition was in line with the valuation of similar projects in its portfolio.HICL recently completed the acquisition of an additional 12% equity and loan note interest in the Newham BSF project from RM Plc for £1.6m, taking its stake in the project to 80%.HICL shares were up 0.18% to 156.78p at 09:43 on Wednesday.