John Laing Infrastructure has announced that, following the satisfaction of certain conditions agreed between the parties, it has completed the acquisition of a 95% interest in the Oldham Social Housing PPP project.
The project, located in the UK, has been fully operational since January 2015 and benefits from an availability-based payment mechanism. The acquisition was made under the terms of the First Offer Agreements between JLIF and John Laing Group plc.
The combined consideration for the interest in this project and the 100% interest in the British Transport Police project (which completed on 29 February 2016) is approximately GBP22 million. The GBP22 million combined consideration formed part of the approximately GBP150 million of UK and Western European PPP assets on which JLIF was in advanced discussions on, referred to in the Trading Update and Placing announcements made on 25 February 2016. The consideration will be funded by drawing on JLIF’s GBP180 million multi-currency revolving credit facility which is currently undrawn.
The discount rate used to value the interest is within the range used for the valuation of JLIF’s portfolio as at 31 December 2015.
JLIF : John Laing Infrastructure buys Oldham Social Housing Project