Acquisition of Forth Valley Royal Hospital stake

26 September 2011

John Laing Infrastructure Fund

Acquisition of a 50% stake in Forth Valley Royal Hospital

John Laing Infrastructure Fund, the international PPP/PFI infrastructure investment company, is pleased to announce it has agreed the acquisition of a 50% stake in the Forth Valley Royal Hospital project for a total value of £22.81m by acquiring the Forth Valley Investment Company Limited, which holds the stake, from the Commonwealth Bank of Australia.

The Forth Valley Royal Hospital PFI project adds to JLIF's existing portfolio of hospital assets, fits well within the overall portfolio and meets the Company's criteria for acquisitions. The project is availability-based with contracted, government-backed revenue streams, linked to inflation, and provides JLIF with a low risk, stable income. The project has recently completed construction and now has moved into full operations and has a contract life of 31 years from the date of acquisition.

The asset has been valued using a discount rate in line with the valuation of other similar assets already within the portfolio in the early stages of the "ramp-up" phase, and has a projected net return in line with JLIF's stated target. The acquisition is being funded partly by cash and partly by utilising the debt facility that was arranged earlier in 2011 for the intention of funding acquisitions such as this.

JLIF is also pleased to announce a £35 million extension of its Revolving Credit Facility with the Royal Bank of Scotland, first announced in April this year, taking the facility to a total of £60 million.

Andrew Charlesworth, JLIF Investment Adviser, commenting on today's announcement, said:

"Forth Valley is Scotland's largest healthcare PFI project and today's acquisition is an exciting development for the fund. We are an experienced operator of hospitals, with another five such projects already in the portfolio. This high quality project, located in Larbert, just outside of Falkirk in Scotland, is operational with stable cash flows and matches our appetite for low risk, high yielding assets."David Marshall, JLIF Investment Adviser, commenting on today's announcement, said:

"Today's announcement represents JLIF's first third party acquisition which, together with our First Offer Agreement with John Laing group and the increased debt facility, reinforces our confidence in the strength of our pipeline and our ability to benefit from the many opportunities we see in our markets."

Contacts:

JLIF Investment Adviser Tel: 020 7901 3326

David Marshall

Andrew Charlesworth

Finsbury Tel: 020 7251 3801

Faeth Birch

Philip Walters

1 The total amount comprises a cash payment on completion of £8.0m and the assumption of a future capital injection in July 2012 of £14.8m.