12th Jul 2013 07:00
12 July 2013
John Laing Infrastructure Fund Limited (the "Company" or "JLIF")
JLIF agrees largest portfolio acquisition since IPO
JLIF, the FTSE 250 international PPP infrastructure investment company, is pleased to announce that it has agreed the acquisition of a portfolio of 11 operational and yielding assets (the "Portfolio"), from Investors in the Community LP ("IIC"), for c. £123 million. The total consideration is consistent with the current valuations of similar projects in JLIF's portfolio and will be satisfied either wholly in cash or partly in cash and partly by the issue of new ordinary shares in JLIF*. Any cash element of consideration will be funded by JLIF's existing bank facility.
The acquisition will complete once the customary consent process has concluded. Following the acquisition, the total number of projects in the JLIF portfolio increases to 49, with an approximate aggregate valuation of £697.8 million#.
The Portfolio comprises high quality, robust social infrastructure assets in the Education, Healthcare, Social Housing and Street Lighting sectors. The projects are all fully operational and supported by government-backed, inflation linked revenue streams. The average remaining contract life of the Portfolio is similar to JLIF's existing portfolio at 20.4 years. The projects fit strongly within JLIF's stringent investment criteria, offering long-term, stable cash flows with low correlation to the economic cycle or other assets.
The projects in the Portfolio include:
·; Leeds Combined Secondary Schools (100% ownership)
·; Bexley Schools (100% ownership)
·; Bristol BSF (37.5% ownership)
·; Peterborough Schools (81% ownership)
·; Miles Platting Housing (33% ownership)
·; Realise Health LIFT (Colchester) (60% ownership)
·; Northampton Mental Health (100% ownership)
·; Barnet Lighting (85% ownership)
·; Enfield Lighting (85% ownership)
·; Lambeth Lighting (85% ownership)
·; Redcar and Cleveland Lighting (85% ownership)
* Up until completion of the transaction, expected over the coming month, the vendor may elect to receive up to 20 million new ordinary shares in JLIF as part of the consideration at an issue price of 112.128p per share. Such issue of shares would take place on completion of the acquisition and is conditional on JLIF Board approval and on admission to listing on the Official List and to trading on the London Stock Exchange. The new shares, on issue, would rank pari passu with existing shares in all respects and will be subject to a 6 month lock up from admission, subject to certain customary exceptions.# Comprising portfolio value as at 31 March 2013 of £548.1m, plus £123m and acquisition of £26.7m completed in April 2013.
The projects are managed by Mill Asset Management Group, one of the largest independent asset and SPV managers of PPP infrastructure projects in the UK, and will continue to be so after completion.
Andrew Charlesworth from John Laing Capital Management, Fund Manager to JLIF, said:
"We are delighted to announce the acquisition of the portfolio from IIC. The portfolio is an excellent fit with our investment criteria. We continue to benefit both from a strong pipeline of attractive assets from John Laing and from our ability to make attractive purchases such as this from the wider market. Indeed, since the start of 2012, over 70% of acquisitions by value have been sourced outside of JLIF's first offer agreement with John Laing."
Tom Symes from Mill Asset Management Group, SPV Manager to the IIC Fund, said:
"We are very pleased that ownership of IIC's portfolio is passing to JLIF, where it will be an excellent fit with the existing JLIF assets. The projects in the IIC portfolio have performed exceptionally well, and provide great benefit to the communities in which they are located. MAMG looks forward to working with the JLIF team in managing the projects."
David Marshall from John Laing Capital Management, Fund Manager to JLIF, said:
"JLIF's success in acquiring this high quality portfolio reflects our strong understanding of the infrastructure sector, and demonstrates the strength of our relationships with key market participants. JLIF remains confident about our future acquisition opportunities in what is a buoyant secondary market."
For further information, please contact:
John Laing Infrastructure Fund 020 7901 3326
David Marshall
Andrew Charlesworth
RLM Finsbury 020 7251 3801
Faeth Birch
Philip Walters
Related Shares:
John Laing Infrastructure Fund