HICL in big portfolio acquisition

20th Dec 2011 07:05

Infrastructure investment firm HICL Infrastructure has acquired investments in 26 PFI/PPP (private finance initiative/public-private partnership) projects from two infrastructure funds managed by Barclays Infrastructure Funds Management.HICL is paying around £143.4m for the projects, all of which are operational and which, apart from two investments in yhe Republic of Ireland (the Cork School of Music and a grouped schools project), are based in the UK. The acquisition was funded from available cash resources and the group's revolving debt facility. Each project has its own long term debt finance and is independent of the others.The 26 investments comprises ten schools projects, eight health projects, five fire and police projects, two roads and a library project, with investment stakes in each project ranging from 25% to 100%. Chairman of the firm Graham Picken said: "We are pleased to have completed this acquisition on valuation metrics which compare favourably with our latest assessment of asset values in the company's investment portfolio as a whole."This acquisition is a portfolio transaction and, as a result, the Investment Adviser intends to conduct a further review in the New Year to evaluate any possible opportunities for selective disposals or bolt-on acquisitions."The acquisition is one of HICL's chunkier purchases, which will prompt the board to consider raising fresh funds through the issue of shares. The company has had ten equity issues in the second half of 2011 alone.--jh/nr