HICL Infrastructure has announced that it has made an incremental investment in the Sheffield Schools PFI Project in conjunction with its existing joint venture partner, Kajima Partnerships Limited, from the Kier Group Pension Scheme for a consideration of £4.1m.
The HICL Group and KPL have an existing joint venture holding company, in which the HICL Group has a 75% shareholding. Previously this holding company owned a 50% interest in the Project. However, following the transaction, the holding company now owns 100% of the project, thereby increasing the HICL Group’s indirect ownership from 37.5% to 75%.
The project is a 26-year PFI concession which involves the design, construction, financing, maintenance and operation of two new primary and two new secondary schools on behalf of Sheffield City Council. The Project was signed in April 2005 and has been fully operational since January 2007. The provision of soft and hard facilities management services during the operational phase of the project continues to be undertaken by Kier Facilities Services Limited under a concession life contract.
The company says that the consideration paid by the HICL Group is in line with the current valuation of similar UK social infrastructure projects in the HICL Group’s portfolio and was funded from existing cash resources. Following the acquisition, they say that the HICL Group has a net funding requirement of approximately £7m.
HICL Infrastructure invests a further £4.1m in the Sheffield Schools PFI Project : HICL