HICL Infrastructure, the infrastructure investment firm, is now the majority stakeholder in the Colchester Garrison private finance initiative (PFI) project after buying up a stake from design and engineering consultancy WS Atkins.
HICL has upped its stake in the project from 42% to 56% at a cost of £15m, which is in line with the current valuation of similar UK PFI projects in the group's portfolio. The deal comprises a gross consideration of £15m minus £0.6m previously received by Atkins under loan notes.
The project is a 35-year concession to design, construct, finance and maintain a new garrison facility at Colchester, Essex for the Ministry of Defence (MOD). The new garrison has been built partly on an existing garrison site and partly on an adjacent brownfield site owned by the MOD. The project involved capital expenditure of around £550m. Construction was undertaken by Sir Robert McAlpine Limited and is now complete.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Catering, cleaning and transport services are provided by Sodexo Defence Services Limited. Sodexo Property Solutions (formerly known as Atkins Facilities Management Limited) is responsible for estate and grounds maintenance, contract management and security, waste management and life-cycle.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
