John Laing Infrastructure Fund has announced that it has entered into an agreement with Iridium Concesiones de Infraestructuras (Iridium), a subsidiary of Grupo ACS, to acquire an effective 40% stake in the Barcelona Line 9 Section II metro project. Line 9 (pictured) runs directly through the heart of the city centre, connecting the airport and the port district.
The purchase is expected to complete over the coming weeks (subject to the customary consents) at a price of approximately £85m, which is to be funded using the company’s £180m multi-currency revolving credit facility. The transaction represents JLIF’s first investment in the Spanish PPP market and, when completed, will bring the total number of assets in JLIF’s portfolio to 58.
The company says that project does not retain any construction risk and full availability payments are being received from the client. Furthermore, despite several of the 15 stations currently being in construction through separate agreements, the delivery risk does not sit within John Laing Infrastructure Fund ‘s investment. The client, IFERCAT, is a public agency of the Catalonian Government, whose payments are backed by the Region of Catalonia, which is financially supported by the Spanish Central Government.
The concession has more than 27 years remaining, which provides JLIF with a significant long term source of income. Iridium, one of the world’s leading infrastructure companies, will remain involved in the project, both as an equity participant and as a service provider.
John Laing Infrastructure acquiring 40% of Barcelona metro project : JLIF