HICL Infrastructure has announced that it has agreed to acquire a further 40% interest in the N17/N18 Gort to Tuam PPP Scheme for €23m. The purchase is being funded from HICL’s revolving credit facility and the transaction is expected to complete by the end of February 2019. Harry Seekings, Co-Head of Infrastructure at InfraRed (HICL Infrastructure’s investment manager) says that acquisition will be accretive to the existing portfolio in terms of total return and yield metrics.
N17/N18 Gort to Tuam PPP Scheme
The N17/N18 Gort to Tuam PPP Scheme is a 28-year availability road concession to design, finance, construct and maintain a new 57km dual carriageway section of the N17/N18 between Gort and Tuam in County Galway on the west coast of Ireland for Transport Infrastructure Ireland. Construction works were completed in December 2017 and the project is now operational. At financial close in 2014, HICL acquired an initial 10% interest in the Project and entered a commitment to acquire a further 32% interest (Click here read QuotedData’s comments at that time). With completion of this incremental investment, which HICL says fulfils the commitment it made in 2014, HICL will hold a 50% interest in the Project.
About HICL Infrastructure
HICL Infrastructure was established to be a long term investor in public infrastructure, working with the public sector to deliver high-quality infrastructure projects. Its portfolio is diversified across various sectors, including education, health, and transport infrastructure, both in the UK and overseas. HICL’s assets are predominantly operational, underpinned by long term contractual agreements that deliver annual yield. HICL Infrastructure aims to be cost efficient by having low management fees and operating expenses, and works constantly with clients to find efficiency savings which benefit them. HICL Infrastructure also aims to distribute the majority of underlying investment returns to its shareholders and without the accumulation of profits offshore.