HICL Infrastructure announced the disposal of its 100% interest in the Queen Alexandra Hospital Project on Thursday.
The project will reportedly be transferred to InfraRed European Infrastructure Income Fund 4, which is set to pay £108 million to HICL following the transfer.
HICL announced that the £108 million proceeds will represent a 1.5p per share increase on NAV aligned with the company’s valuation on 30 September 2021.
The company invested in the Queen Alexandra Hospital in 2010, and highlighted InfraRed’s active asset management strategy in de-risking and stabilising the project since 2018 as a key factor in contribution to the rising NAV.
The agreement is subject to customary approvals and HICL shareholder approval, however if successful, the disposals are scheduled to be redeployed into the group’s advanced pipeline and to pay down its revolving credit facility.
“The disposal of HICL’s investment in Queen Alexandra Hospital is a tangible example of the Company’s business model in action,” said HICL Chairman Ian Russel.
“HICL, through its Investment Manager InfraRed, seeks to enhance shareholder value in the existing portfolio through active asset management to optimise portfolio performance and composition.”
“The proceeds provide an alternative source of funds to rotate into the Company’s advanced pipeline.”
“The Board unanimously recommends that Shareholders vote in favour of this transaction, as all the Directors intend to do in respect of their own beneficial holdings of Ordinary Shares.”
HICL Infrastructure shares rose 0.5% to 177.9p in late morning trading on Thursday after the announcement.