REG - HICL Infrastructure - £52m incremental stake in Cross London Trains

HICL InfrastructureAnnouncement

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RNS Number : 5922Y  HICL Infrastructure PLC  30 March 2026

30 March 2026

 

HICL Infrastructure PLC

"HICL" or "the Company" and, together with its subsidiaries, "the Group", the
London-listed infrastructure investment company managed by InfraRed Capital
Partners Limited ("InfraRed" or "the Investment Manager").

 

HICL acquires additional stake in Cross London Trains for c.£52m

 ·         Additional 6.65% interest acquired in Cross London Trains ("XLT") for c.£52m
 ·         Increases HICL's total interest to 13.13%, improving governance position and
           board representation at the portfolio company level
 ·         Additional investment expected to add in excess of 1.0p to NAV per share on
           completion of the transaction
 ·         Expected return and yield make this transaction an appropriate deployment of
           capital in line with HICL's strategic priorities
 ·         Continued focus on disciplined, balanced capital allocation, consistent with
           HICL's active approach to portfolio evolution
 ·         HICL has also increased the rate of share repurchases following the recently
           announced A63 Motorway disposal, recognising the prevailing share price
           discount to NAV

Mike Bane, Chair of HICL, said:

"This investment demonstrates the Board's disciplined and balanced approach to
capital deployment. Increasing our stake in XLT enhances HICL's governance
position in a high‑quality, operational asset and supports long‑term NAV
per share growth. The transaction is also expected to deliver compelling NAV
accretion and incremental income."

Edward Hunt, Head of Core Infrastructure Funds at InfraRed, said:

"This transaction reflects InfraRed's ability to act nimbly and decisively as
opportunities arise organically in the Company's portfolio, a proven source of
value for HICL. By increasing the Company's ownership and governance
influence, we are well positioned to continue generating value from a
resilient, high‑performing asset within a critical part of the UK's
transport network."

The Board of HICL is pleased to announce that the Company has agreed to
acquire a further 6.65% interest in XLT for approximately £52 million.

XLT owns and originally delivered the fleet of 115 Siemens Desiro City Class
700 electric trains operating on the Thameslink passenger rail route. This is
one of the UK's most important transport corridors, covering the North-South
London commuter axis and serving major hubs including St Pancras
International, Gatwick Airport, and Luton Airport.

The fleet was initially leased in 2016 under a 20-year availability contract
with a revenue underpin from the Secretary of State for Transport. At the end
of this period, ownership will remain with shareholders, and the fleet is
expected to be re-leased on commercial terms. Long-term maintenance
obligations are retained by the manufacturer, Siemens, under a direct
contractual arrangement with the operator, Govia Thameslink Railway (GTR), and
therefore sit outside of the project company's delivery obligations. The
rolling stock is fully operational, bespoke to the route's infrastructure and
has demonstrated a strong performance track record.

The acquisition increases HICL's total economic interest in XLT to 13.13%,
strengthening the Company's governance position and board representation at
the portfolio company level. This enhanced influence supports InfraRed's
active asset management approach and creates further opportunity to drive
long‑term value from a high‑quality, operational asset.

The attractive price at which the stake has been acquired is expected to
increase the Company's NAV per share by at least 1.0p following completion of
the transaction. The price reflects the minority position being divested and
HICL's rights through its existing shareholding in XLT. Consistent with the
Board's disciplined approach to capital allocation, the investment was
assessed against alternative uses of capital, including the repurchase of the
Company's shares. The Board is satisfied that the expected return and yield
from this incremental investment, and the opportunity afforded to increase
HICL's investment and governance rights in a high-performing critical asset,
make this an appropriate deployment of capital in line with HICL's strategic
priorities.

Completion of the transaction is expected before the end of June 2026, subject
to customary third-party consents.

The acquisition will be funded from the proceeds of recently completed
disposals. The Company continues to benefit from a number of live capital
rotation opportunities as part of HICL's active approach to enhancing
portfolio composition and long-term shareholder returns; and the Board will
continue to evaluate such opportunities on a case-by-case basis within the
broader context of its capital allocation considerations.

-ends-

 

Enquiries

InfraRed Capital Partners Limited                  +44 (0) 20 7484
1800 / info@hicl.com (mailto:info@hicl.com)

Edward Hunt

Mark Tiner

Mohammed Zaheer

 

Brunswick
 
+44 (0) 20 7404 5959 / hicl@brunswickgroup.com
(mailto:hicl@brunswickgroup.com)

David Litterick

 

Investec Bank plc
 
+44(0) 20 7597 4952

David Yovichic

Denis Flanagan

 

RBC Capital Markets
                                        +44
(0) 20 7653 4000

Matthew Coakes

Elizabeth Evans

 

Aztec Financial Services (UK) Limited           +44(0) 203 818 0246

Chris Copperwaite

Magdala Mullegadoo

HICL Infrastructure PLC

HICL Infrastructure PLC ("HICL") is a leading long-term investor in
infrastructure assets, with a diversified portfolio of predominantly
operational investments generating stable, inflation-linked cashflows. Since
becoming the first infrastructure investment company to be listed on the
London Stock Exchange, HICL has established a strong track record of investing
in essential assets that support the delivery of public services and
long‑term value creation.

The Company's investment strategy is focused on delivering a total return for
shareholders consisting of sustainable dividend growth and long‑term NAV
accretion, enabled by highly visible cashflows, long asset lives and active
portfolio management. HICL's portfolio is positioned towards the lower end of
the infrastructure risk spectrum and is underpinned by disciplined capital
allocation, strong cash generation and a self‑funding model.

Further details can be found on the HICL website www.hicl.com
(http://www.hicl.com/) .

 

Investment Manager (InfraRed Capital Partners)

The Investment Manager to HICL is InfraRed Capital Partners Limited
("InfraRed") which has successfully invested in infrastructure projects since
1997. InfraRed is a leading international investment manager, operating
worldwide from offices in London, New York, Miami, Seoul, Madrid, Frankfurt
and Sydney and managing equity capital in multiple private and listed funds,
primarily for institutional investors across the globe. InfraRed is authorised
and regulated by the Financial Conduct Authority.

The infrastructure investment team at InfraRed consists of over 100 investment
professionals, all with an infrastructure investment background and a broad
range of relevant skills, including private equity, structured finance,
construction, renewable energy and facilities management.

InfraRed implements best-in-class practices to underpin asset management and
investment decisions, promotes ethical behaviour and has established community
engagement initiatives to support good causes in the wider community. InfraRed
is a signatory of the Principles of Responsible Investment.

Further details can be found on InfraRed's website www.ircp.com
(http://www.ircp.com/) .

 

 

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