HICL Infrastructure Regulatory News (HICL)

21 October 2013

HICL Infrastructure Company Limited

Acquisition of two new Investments for £9.2m

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce two acquisitions, being a 50% shareholding interest in the Brighton Children's Hospital Project from Kajima Partnerships Limited and a 29.1% interest in the Falkirk Schools NPD Project from Royal Bank Project Investments Limited.

The Brighton Children's Hospital Project is a £37.1m scheme which involved the design, construction, financing and subsequent maintenance of a new children's hospital on behalf of the Brighton & Sussex University Hospitals NHS Trust.  The hospital reached Financial Close in June 2004 and has been operational since May 2007 and comprises 100 beds, diagnostic facilities, ambulatory care, teaching areas, two operating theatres and an X-ray facility. Hard Facilities Management ("FM") services are provided by Integral UK Limited.

The Falkirk Schools NPD Project is a £120m scheme which involved the design, construction, financing and subsequent operation of four secondary schools in Falkirk, Scotland on behalf of the Falkirk Council. The Project reached Financial Close in May 2007 and the schools became operational in phases up to July 2009. Hard FM services are provided by FES FM Limited.

The total consideration paid by the Group for the two investments was £9.2m which is in line with the current valuation of similar UK social infrastructure projects in the Group's portfolio.

The acquisition was funded from the Group's existing cash resources, and takes the number of infrastructure investments in the Group's portfolio to 91.

Tony Roper, a Director of InfraRed Capital Partners Limited (HICL's Investment Adviser) said:

"We are pleased to secure these new investments from valued relationships with whom we have worked successfully over a number of years. The Group has a healthy pipeline of further investment opportunities which the InfraRed team is carefully evaluating and we are confident of securing further investments in line with the Group's investment strategy"

We are looking forward to working with all the stakeholders to ensure these two projects continue to be successful."

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Enquiries

InfraRed Capital Partners Limited +44 (0) 20 7484 1800

Tony Roper

Keith Pickard

Robin Hubbard

Tulchan Communications +44 (0) 20 7353 4200

Martha Walsh

Peter Hewer

Canaccord Genuity +44 (0) 20 7523 8000

Dominic Waters

Neil Brierley

Will Barnett

David Yovichic

HICL Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange. It currently owns a portfolio of 91 social and transportation infrastructure investments and is seeking further suitable investment opportunities which fit its stated Investment Strategy.

Further details of the Company can be found on its website www.hicl.com.

NPD

In recent years a number of public authorities in Scotland have procured privately financed infrastructure projects using the "non-profit distributing" or "NPD" model. The NPD model was developed and introduced as an alternative to, and has since superseded, the traditional private finance initiative or "PFI" model in Scotland. It has been used in the education, health and transport sectors.

The NPD model is defined by the broad core principles of: enhanced stakeholder involvement in the management of projects; no dividend bearing equity; and capped private sector returns.

It is important to note that the NPD model is not a "not for profit" model. Contractors and lenders are expected to earn a normal market rate of return as in any other form of privately-financed PPP deal. Rather, the model aims to eliminate uncapped equity returns associated with the traditional PFI model and limit these returns to a reasonable rate set in competition.

Investment Adviser

The Investment Adviser to the Company is InfraRed Capital Partners Limited, whose infrastructure investment team has successfully invested in over 160 infrastructure projects since 1997. InfraRed manages specialised funds and co-investment capital on behalf of a broad range of investors from around the world, creating value through investing in infrastructure and real estate projects. The head office is in London, with offices in Hong Kong, New York, Paris and Sydney.

InfraRed Capital Partners Limited is authorised and regulated by the Financial Conduct Authority.