HICL Infrastructure Company Limited (LON:HICL), the listed infrastructure investment company advised by InfraRed Capital Partners Limited, today announced that it has agreed to acquire a further 40% interest in the N17/N18 Gort to Tuam PPP Scheme. The consideration is €23m and the transaction is expected to complete by the end of February.
The Project is a 28-year availability road concession to design, finance, construct and maintain a new 57km dual carriageway section of the N17/N18 between Gort and Tuam in County Galway on the west coast of Ireland for Transport Infrastructure Ireland. Construction works were completed in December 2017 and the project is operational. At financial close in 2014, HICL acquired an initial 10% interest in the Project and entered a commitment to acquire a further 32% interest. With completion of this incremental investment, which fulfils the commitment made in 2014, HICL will hold a 50% interest in the Project.
The consideration for this incremental investment will be funded from HICL’s Revolving Credit Facility.
Harry Seekings, Co-Head of Infrastructure at InfraRed said:
“We are delighted to be making a further investment in the N17/N18 project. This acquisition will be accretive to the existing portfolio in terms of total return and yield metrics. It exemplifies InfraRed’s ongoing strategy of seeking opportunities to optimise HICL’s investment portfolio.”