REG - HICL Infrastructure - Portfolio sale for c.£225m

HICL InfrastructureAnnouncement

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RNS Number : 6131V  HICL Infrastructure PLC  18 August 2025

18 August 2025

 

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".)

 

Portfolio sale for c. £225m

 

 ·         Portfolio sale of seven UK PPP assets in line with HICL's 31 March 2025
           valuation
 ·         Proceeds to fund previously announced £150m share buyback programme and
           outstanding equity commitments
 ·         Brings total asset sales over the past 24 months to c. £725m at consistently
           strong valuations

 

 

The Board of HICL is pleased to announce it has agreed to dispose of a
portfolio of seven UK PPP assets to APG, the largest Dutch pension services
provider, for a total consideration of c. £225m.

 

The portfolio comprises 50% of HICL's investments in Southmead Hospital and
Pinderfields and Pontefract Hospitals and the entire equity interest in four
UK LIFT 1  (#_ftn1) projects and Edinburgh Schools. The c. £225m
consideration includes cash distributions received by HICL since 1 April 2025
and is in line with the Company's last audited valuation of the assets as at
31 March 2025. The majority of the consideration will be received on
completion, with a small non-contingent deferred element of £14m due by 30
June 2026 with the potential to bring this forward.

 

This transaction is the latest example of HICL's strong track record of
realisations, with approximately £725m of asset sales completed over the past
24 months at consistently strong valuations. The disposal further evidences
the robustness of the Company's NAV, is accretive to several key portfolio
metrics, and further enhances portfolio construction. Following completion of
the transaction, HICL's exposure to healthcare assets will reduce from 22% to
16% of gross portfolio value.

 

The two largest assets in the portfolio sale are the Southmead Hospital and
the Pinderfields and Pontefract Hospitals, where HICL will retain 31.25% and
50% shareholdings respectively. Both are large UK healthcare assets where the
Investment Manager has worked extensively with the local NHS Trusts over a
number of years to progress major capital works programmes to improve facility
condition. At Southmead Hospital, InfraRed has significantly de-risked the
project following the liquidation of Carillion in 2018.

 

Completion of the portfolio sale is expected before 31 December 2025 and is
subject to customary third-party consents. Proceeds from the transaction will
be used to fund the Company's share buyback programme, including full
repayment of the revolving credit facility, and to meet existing investment
commitments of c. £110m.

 

Following completion of the disposal, InfraRed will manage the assets on
behalf of APG under a separately managed account agreement. In light of this,
and notwithstanding the fact that the transaction does not formally constitute
a related party transaction under the UK Listing Rules, the Board, in line
with good corporate governance practices, considers that the terms of the
transaction are fair and reasonable as far as the Company's shareholders are
concerned and the Directors have been so advised by Investec Bank plc. An
independent non-executive Director of the Company joined the HICL Investment
Committee for each meeting pertaining to the transaction, and the Board
reviewed the terms of the disposal prior to approving it.

 

As part of this transaction, HICL has agreed a partnership framework with APG
which provides the opportunity to pursue further divestments over time,
subject to the Company's requirements. The framework also includes the option
for co-investment into new assets, should attractive opportunities arise.

 

Mike Bane, HICL Chair, said:

"We are pleased to announce another material disposal for the Company, which
again highlights both the quality of HICL's underlying portfolio and a
consistent ability to execute divestments at attractive valuations. In the
last two years, the Company has raised over £725m through disposals, enabling
the Board to deliver on its capital allocation priorities for the benefit of
shareholders."

 

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

"This is another important transaction delivered by InfraRed in support of the
Board's objectives. The sale improves key portfolio metrics for HICL and
reflects InfraRed's ability to execute highly targeted divestments. It also
reinforces the through-cycle attractiveness of high-quality infrastructure
assets, with pricing that underscores the Company's robust NAV and highlights
the continued dislocation between public and private markets."

 

 1  NHS Local Improvement Finance Trust

 

-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)

Sofie Brewis

 

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

Sarah Felmingham

 

HICL Infrastructure PLC

HICL Infrastructure PLC ("HICL") is a long-term investor in infrastructure
assets which are predominantly operational and yielding steady returns. It was
the first infrastructure investment company to be listed on the London Stock
Exchange.

With a current portfolio of over 100 infrastructure investments, HICL is
seeking further suitable opportunities in core infrastructure, which are
inherently positioned at the lower end of the risk spectrum.

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, Seoul, Madrid 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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