(Alliance News) - HICL Infrastructure PLC on Tuesday shared two transactions as part of its strategy to benefit portfolio metrics and composition.
The long-term investor in infrastructure assets, which is managed by InfraRed Capital Partners Ltd, has acquired stakes in Phase 1 and Phase 2 of the Bradford Schools projects for an aggregate amount of GBP16 million.
HICL's stake in Phase 1 is 48% and stake in Phase 2 is 62%, accretive to its key portfolio metrics.
The Bradford Schools projects are public-private partnerships for 27 years to finance, construct, operate and maintain secondary schools for Bradford city council.
The acquisitions will be part-funded by HICL's sale of its 50% interest in the Health & Safety Executive Headquarters public-private partnership project for GBP11 million.
HICL noted the price of the sale represents a small premium to the asset's valuation in march. "This reallocation of capital from Health & Safety Executive Headquarters to Bradford Schools is accretive to returns and yield whilst delivering an improved risk profile and a longer asset life for the portfolio," it added.
Earlier this year, HICL sold its entire equity and subordinated debt interests in the South East London Police Stations public-private partnership project for GBP27 million as part of its portfolio optimisation strategy.
"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," said Harry Seekings, Head of Infrastructure at InfraRed.
Shares in HICL were up 0.1% at 164.89 pence in London on Wednesday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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HICL Infrastructure (HICL)