LONDON, UK: HICL Infrastructure Plc has acquired its first investment in Germany, a 50% equity interest in the B247 Mühlhausen-Bad Langensalza Road PPP (the “B247” or the “Project”).
The interest was acquired from Vinci Concessions Deutschland GmbH (“VINCI”), paving the way for future partnership on the German road PPP pipeline. HICL’s total investment into the Project will amount to c. EUR 12.0m.
The B247 is a new 22km road that will link the cities of Mühlhausen and Bad Langensalza, in the Land of Thuringia. The 30-year PPP covers the design, financing, construction, maintenance and operation of the B247. The Project reached financial close in September 2021 and construction is expected to be completed by VINCI Group companies in June 2025. The client is the Federal Republic of Germany.
As a greenfield availability PPP investment in a AAA-rated European jurisdiction, the Project sits both within HICL’s investment strategy and HICL’s vision to connect communities. The investment is accretive to key portfolio metrics and will be funded by HICL’s existing credit facilities.
Edward Hunt, Head of Core Income Funds at InfraRed said: “The successful delivery by InfraRed of over ten assets through construction and into operations for HICL’s clients has been a strong source of outperformance for the Company’s shareholders since IPO. We are pleased to be embarking on the delivery of the B247 Road in Germany, alongside a high-quality partner in VINCI. The B247 Road will be a key transport corridor: linking communities and supporting economic growth in the region; reducing congestion for residents; and improving road safety.”
HICL Infrastructure PLC (“HICL”) is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
With a current portfolio of over 100 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.