HICL lowers stake in PPP project to fund Bradford Schools acquisition
Infrastructure investment company HICL Infrastructure said on Wednesday that it had made two transactions, acquiring an interest in one project while lowering its take in another.
HICL said it had acquired incremental stakes in the Bradford Schools Phase I and II PPP projects, both of which are 27-year contracts to finance, construct, operate, and maintain secondary schools for the City of Bradford Metropolitan District Council, as part of its "Building Schools for the Future" programme.
The combined consideration of £16.0m takes the company's stakes in Phase I and Phase II to 48% and 62%, respectively, and will be partly financed from its disposal of a 50% interest in the Health & Safety Executive Headquarters PPP project for £11.0m, a small premium to the asset's March valuation.
Harry Seekings, head of infrastructure at HICL manager InfraRed, said: "These transactions see a continuation of the company's strategy to selectively dispose of assets where beneficial to portfolio metrics and composition, while making further accretive investments in existing high quality holdings, which offer sustainable long-term returns and deliver for the communities they serve."
As of 0940 BST, HICL Infrastructure shares were up 0.055% at 164.89p.