HICL increases stake in three projects, disposes of two others

15th Jan 2014 09:36

Infrastructure company HICL has acquired incremental stakes in three existing investments, and disposed of interests in two other projects. The group earned net disposal proceeds of £5.8m for the transactions, which saw the group increase its stake in the Derby Schools, Newport Schools and Medway Police projects from 80% to 100%, and reduce its holding in the Dorset Police and Swindon Police projects from 80% to zero. HICL said the transaction values were in line with the current valuation of similar UK social infrastructure projects in its portfolio. It planned to use the proceeds of the disposals to reduce drawings under the Group's revolving credit facility. Chairman Graham Picken said: "This transaction has a modest impact on the size of the investment portfolio. However, it demonstrates how the Investment Adviser is undertaking active portfolio management to enhance the value of the portfolio. By rationalising our holdings of specific assets selectively, we are able to enhance value and create efficiencies for the benefit of our shareholders."With a healthy pipeline of potential new investment opportunities we are confident that the group can re-invest the net disposal proceeds in a timely manner."Following the transactions, the group's portfolio comprised 91 infrastructure investments.NR