3i Infrastructure generates exceptional return but warns "challenges" continue

Investment trust 3i Infrastructure said it continued to perform well during the last quarter after selling its major UK rolling stock investment, but warned the continued rise in infrastructure prices made it ever more challenging to find new investment opportunities.The group generated portfolio income of £28.2m between October and December, which includes £15.5m dividend received from the sale of Eversholt Rail to a Hong Kong infrastructure investor.However, it has also invested £26.5m in new projects and £2.6m in existing assets.Chairman Peter Sedgwick said: "The sale of 3i Infrastructure's holding in Eversholt Rail will generate an exceptional return for our shareholders."While we generally aim to hold our core infrastructure investments over the long term, after a careful evaluation of the price offered against our assessment of the long-term potential for the business, we decided that a sale of our holding in the business would generate significant additional value for our shareholders."Prices for infrastructure assets continued to rise, making it more challenging for the company to find new investment opportunities in core infrastructure.3i, as part of its annual boardroom strategy review, will review the company's return objective to ensure it remains sustainable over the long-term and update the market before final results in May."The board will be assessing the appropriate return target for the future as the divestment of its holding in Eversholt Rail is completed and the pipeline of investment opportunities develops over the coming months." Shares were down 0.54% to 155.16p on Wednesday at 10:08. 3i Infrastructure