HICL buys stake in Colchester PFI project from Atkins

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.

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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.