John Laing Infrastructure has announced that it has entered into an agreement to acquire a 100% interest in Project Service LLC, the provider of 23 highway service areas in the State of Connecticut (USA), between New York and Boston.
John Laing Infrastructure has purchased the interest from Carlyle Infrastructure Service Plazas, L.P. (an affiliate of The Carlyle Group), Doctor’s Associates Inc. (the parent company of Subway Restaurants) and Subcon, Inc. (a major Subway franchisee and developer). The acquisition is JLIF’s first entry into the US P3 market and will take the total number of assets within John Laing Infrastructure’s portfolio to 61. The equity value is the US Dollar equivalent of approximately GBP72 million and will be funded using JLIF’s multi-currency revolving credit facility. John Laing Infrastructure expects the acquisition to complete in the coming weeks subject to the satisfaction of the conditions as agreed between the parties.
The project involves the operation and maintenance of 23 highway service areas along Interstate 95, Interstate 395 and Route 15, under a 35-year exclusive concession signed in 2009 with the State of Connecticut acting through the Connecticut Department of Transport. The planned renovation of all 23 facilities, as agreed under the concession signed in 2009, was completed in August 2015 and all 23 highway service areas are now fully operational. Project Service LLC is the exclusive provider of Connecticut’s on-highway fuel and food facilities along one of the main artery routes between New York and Boston. It has long term tenant agreements in place (15-35 years) with major food and fuel providers including four key anchor tenants including McDonalds, Dunkin’ Donuts, Subway Restaurants and Alliance Energy (Mobil brand). The majority of the revenues from the concession are generated from these anchor tenants. Further, as part of the concession agreements, Project Service LLC pays the Connecticut Department of Transport a share of the Revenues over the life of the concession which ensures strong public-sector alignment.
JLIF : John Laing Infrastructure invests in highway service areas