6th May 2014 07:31
LONDON (Alliance News) - HICL Infrastructure Company Ltd Tuesday said it had bought a 10% stake in a project to build and operate a new dual carriageway in the Republic of Ireland and a further 16.5% stake in a Manchester housing project, for about GBP5.1 million combined.
The infrastructure investor said it had agreed to buy the interest in the contract to build and operate the N17/N18 Gort-Tuam dual carriageway, a public-private partnership scheme, alongside a consortium comprising the Marguerite Fund, John Sisk and Son (Holdings) Ltd, Lagan Projects Investments Ltd, Roadbridge and Strabag SE.
Construction of the new 57 kilometres of road will commence in June 2014 and is expected to be completed in November 2017, it said. John Sisk, Lagan Construction, Roadbridge and Strabag will build the road, and Lagan and Strabag will then maintain the road. The National Roads Authority of Ireland will pay the consortium availability payments for the 25 year operating period of the concession.
HICL is subscribing for an initial 10% interest via shareholder loans at the end of the construction works, and then has a conditional commitment to buy a further 32% interest in early 2019.
The investor said it has also bought a further 16.5% interest in the Miles Platting Social Housing private finance initiative project in Manchester from Adactus Housing Association Ltd.
The Miles Platting project is a 30 year concession to redesign and refurbish approximately 1,500 occupied properties. It reached financial close in 2007 and construction, which was undertaken by a Morgan Sindall PLC subsidiary, was completed in 2012. Adactus Housing will continue to provide the on-going management and maintenance of the properties, HICL said.
HICL Infrastructure shares were up 0.7% at 137.07 pence early Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HICL Infrastructure