HICL Infrastructure Company Limited Completion of two investment acquisitions

Posted: 14th January 2013 08:46

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has completed the acquisition of a 50% equity and loan note interest (the "Interest") in the Northwood MoD HQ PFI Project (the "Project") from Carillion Private Finance (Defence) Limited ("Carillion") for £30.6m.
The Project is a £198m scheme to design, construct and commission new-build facilities and associated site infrastructure and retained estate reconfiguration on behalf of the Ministry of Defence in Northwood, Greater London. The Project reached financial close in July 2006 and is for a term of 25 years from that date.
Northwood is the MoD's strategic military command centre, covering the UK's three armed forces. It is also a NATO establishment. The contract provides fully serviced office accommodation along with improved single living accommodation for personnel stationed on the site. Construction of the facilities and re-configurement of the refurbished estate was completed in July 2011 after a 5 year construction programme. Carillion Services Limited provides both the hard and soft facilities management services to the estate.
This acquisition was announced in the Interim Report and Accounts in November 2012, with details of the transaction not disclosed due to confidentiality restrictions pending completion.  The Company's net funding requirement is not changed by the completion of this acquisition as the costs of the transaction have already been committed and accounted for.
The consideration paid by the Group is in line with the current valuations of similar UK PFI projects in the Group's portfolio and brings the total number of infrastructure investments within the Group's portfolio to 79. The acquisition was funded from the Group's existing cash and debt resources.
The Group has also recently completed the acquisition of additional equity and loan note interests in Fife Schools from a subsidiary of Sodexo SA ("Sodexo"). This takes the Group's total interests in this project to 50.0% and completes the acquisitions announced on 28 August 2012.

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