HICL purchases PFI project from Balfour Beatty - UPDATE

HICL Infrastructure has completed the acquisition of a 50 per cent equity and loan note interest in the Tameside General Hospital private finance initiative (PFI) project from Balfour Beatty.

HICL Infrastructure has completed the acquisition of a 50 per cent equity and loan note interest in the Tameside General Hospital private finance initiative (PFI) project from Balfour Beatty.

The £78m project was sold for £16m, generating a gain on disposal of £9.0m for Balfour. It reached final close in September 2007 and is for a term of around 34 years.

The transaction brings HICL's total number of infrastructure investments to 82.

Tony Roper, Director of InfraRed Capital Partners, HICL's Investment Adviser, said: "We are pleased to have completed this acquisition which was identified as part of the group's pipeline of new investment opportunities at the time of the company's recent successful equity capital raising.

"InfraRed Capital Partners has worked with Balfour Beatty on a number of infrastructure projects in the UK. We look forward to working alongside our co-shareholder and supply chain to provide quality serviced facilities to the trust."

Balfour Beatty also announced the sale of its 50% interest in four PFI school projects in Birmingham, Bassetlaw, Stoke and Rotherham to its co-shareholder, Innisfree, for combined proceeds of £42.5m, generating a gain on disposal of £24.4m.

As such it generated total procees of £58.5m, exceeding the directors' valuation by £21.9m.

Chief Executive Andrew McNaughton, said: "Balfour Beatty's ability to deliver long-term projects has enabled us to deliver superior returns from our equity investments while delivering a first class service to the public sector.

"The transactions we have completed demonstrate the quality and liquidity of our portfolio and are in line with our strategy to generate income from our Infrastructure Investments business through disposals, thereby releasing cash for future investments and delivering value for our shareholders."

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021