7 September 2017
HICL Infrastructure Company Limited
Completion of Acquisition
HICL Infrastructure Company Limited ("HICL" or the "Company"), the listed infrastructure investment company advised by InfraRed Capital Partners Limited ("InfraRed"), is pleased to announce that it has today completed the acquisition of an equity interest in the entities that comprise High Speed 1 ("HS1"). The details of the transaction were announced by the Company on 14 July 2017.
HICL has also successfully finalised co-investment in relation to HS1. In line with the Company's previously announced intention, a group of InfraRed-managed minority co-investors, comprising Korean institutional investors and UK local authority pension funds, have invested approximately £120 million. HICL's own share of the consideration for the HS1 acquisition amounts to £196 million. With co-investment now finalised, HICL has a 21.8 per cent equity interest in HS1 and a net funding requirement of approximately £140 million.
Harry Seekings, Director Infrastructure at InfraRed Capital Partners Limited, said:
"InfraRed is delighted to have completed the HS1 acquisition on behalf of HICL and we welcome the co-investors into the Project. Through co-investment, we are able to develop key relationships with strategically aligned partners in order to facilitate access to larger opportunities for HICL. This approach allows HICL to manage its portfolio exposure and maintain prudent and responsible portfolio construction for its shareholders.
"The HICL portfolio continues to be well diversified. HICL's 10 largest investments, which represent c. 45% of the portfolio by value, are spread across HICL's target market segments, geographies and sectors, with c. 16% of portfolio value currently invested in demand-based assets with returns correlated to economic cycle." 1, 2
1 Percentages calculated using the HICL portfolio valuation at 31 March 2017 plus subsequent investments at cost.
2 Demand-based assets with returns correlated to the economic cycle comprise investments in HS1, two toll roads (A63 Motorway and Northwest Parkway) and a shadow toll road (M1-A1 Link).
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Harry Seekings
Keith Pickard
Tony Roper
Tulchan Communications +44 (0) 20 7353 4200
David Allchurch
Latika Shah
Canaccord Genuity Limited +44 (0) 20 7523 8000
David Yovichic
HICL Infrastructure Company Limited
HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "HICL Group") is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
With a current portfolio of 116 infrastructure investments, HICL is seeking further suitable opportunities, which are positioned at the lower end of the risk spectrum, in three target markets segments: PPP projects; regulated assets; and demand-based assets.
Further details can be found on the HICL website www.hicl.com.
Investment Adviser (InfraRed Capital Partners)
The Investment Adviser to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney. With over 120 professionals it manages in excess of US$9bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of approximately 60 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.
InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.
Further details can be found on InfraRed's website www.ircp.com.
HS1 Ltd
HS1 Ltd has the 30 year concession to own and operate High Speed 1, the UK's first section of high speed rail, as well as the stations along the route: St Pancras International, Stratford International, Ebbsfleet International and Ashford International.
In July 2017 HS1 Ltd was acquired by a consortium comprising funds advised and managed by InfraRed Capital Partners Limited and Equitix Investment Management Limited.
