HICL Infrastructure PLC on Monday said it has agreed to sell its entire interest in the Bradford Building Schools for the Future phase 1 and phase 2 private finance initiative projects for around £37 million.
The investor in infrastructure assets managed by InfraRed Capital Partners Ltd said the sale represents an 8% premium to the company’s valuation of the assets at March 31.
HICL Infrastructure expects the transaction to complete in the fourth quarter of 2023, subject to customary closing conditions.
HICL Infrastructure initially invested in Bradford 1 in June 2014, and in Bradford 2 in June 2009, acquiring additional stakes in the projects in 2021 via pre-emption rights.
Proceeds from the transaction will reduce the drawn balance on the company’s revolving credit facility. Following completion of the disposal, drawings on the RCF are expected to be around £330 million.
‘This transaction improves portfolio composition, enhancing key portfolio metrics including total return, inflation correlation and asset life, and further enhances [our] track record of utilising selective asset realisations to deliver capital growth and market test asset valuations,’ the company said.
Shares in HICL Infrastructure were up 0.1% to 127.13 pence each in London on Monday morning.
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