19th May 2016 06:56
LONDON (Alliance News) - John Laing Infrastructure Fund Ltd on Thursday said it has entered into an agreement to buy Project Service LLC, the provider of 23 highway service areas in the state of Connecticut, US.
The FTSE 250-listed infrastructure investment company said it was purchasing the company from Carlyle Infrastructure Service Plazas LP, which is an affiliate of The Carlyle Group, Doctor's Associates Inc, which is the parent company of Subway Restaurants and Subcon Inc, which is a major Subway franchisee and developer.
Project Service operates and maintains the service areas along Interstate 95, Interstate 395 and Route 15, under a 35-year exclusive concession signed in 2009 with the State of Connecticut acting through the Connecticut Department of Transport. The planned renovation of all the facilities was completed in August 2015 and all 23 service areas are now fully operational, John Laing Infrastructure said.
Project Service has long term tenant agreements in place, between 15 and 35 years, with major food and fuel providers including four key anchor tenants McDonalds, Dunkin' Donuts, Subway Restaurants and Alliance Energy.
John Laing Infrastructure said the purchase will take the total number of assets within its portfolio to 61. The equity value of Project Service is GBP72.0 million and will be funded using John Laing Infrastructure's current revolving credit facility, the company added.
John Laing Infrastructure said the purchase should complete in the coming weeks "subject to the satisfaction of the conditions as agreed between the parties".
"We are pleased to secure our first investment in the US market, which we anticipate may represent a significant source of growth for John Laing Infrastructure over the medium and long term. It represents the third transaction since December 2015 in which John Laing Infrastructure has secured an exclusive bilateral position," said Andrew Charlesworth, an investment advisor to John Laing Infrastructure.
By Hannah Boland; [email protected]; @Hannaheboland
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