HICL Infrastructure PLC on Tuesday said it has entered into agreement to sell a 30% stake in the Northwest Parkway toll-road project in the US for about $86 million.
HICL is a London-based investment firm, managed by InfraRed Capital Partners.
The company said that following competition of the disposal, which is expected in June, it will retain a 23.3% stake in the project. HICL first invested in it in December 2016.
The project is a 99-year concession dating from 2007 to operate and maintain a 14-kilometre section of the beltway road system around Denver, Colorado. The ring road opened to traffic in 2003, and tolls are collected through an all-electronic system.
‘This transaction enhances HICL’s track record of achieving capital growth through selective and disciplined asset realisations, a key pillar of the company’s growth and funding strategy,’ HICL said.
The proceeds from the transaction will be used to fund HICL’s investment in French fibre-to-the-home platform Altitude Infra.
Edward Hunt, head of Core Income Funds at InfraRed, said: ‘Active capital recycling remains a key lever to optimise HICL’s portfolio construction, providing a valuable source of funding beyond capital markets that compounds returns for shareholders and drives NAV outperformance.’
HICL also said that it has completed the acquisition of its interest in Texas Nevada Transmission LLC, a US electricity transmission firm. In September, the company had said it was buying a 46% stake in Texas Nevada Transmission.
Shares in HICL were up 0.3% to 152.00 pence each in London on Tuesday morning.
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