HICL Infrastructure PLC has struck a deal worth approximately £225 million, selling a portfolio of seven UK PPP assets to APG, the Netherlands’ largest pension services provider.
Over the past 24 months, the London-listed infrastructure investment company has completed around £725 million in asset sales at consistently strong valuations as part of a wider asset disposal strategy.
The disposed portfolio includes partial stakes in two major healthcare facilities – 50% of HICL’s investments in Southmead Hospital and Pinderfields and Pontefract Hospitals. Additionally, the company is selling its entire equity interest in four UK LIFT projects and Edinburgh Schools.
Following the sale, HICL’s exposure to healthcare assets will decrease from 22% to 16% of gross portfolio value.
The £225 million proceeds will be allocated to facilitating a share buyback and making fresh investments.
HICL plans to fully fund its previously announced £150 million share buyback programme, including complete repayment of its revolving credit facility.
The remaining funds will meet existing investment commitments of approximately £110 million.
“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,” said Mike Bane, HICL Chair.
“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.”
HICL Infrastructure shares were 1.2% higher at the time of writing on Monday.