LONDON, UK: HICL Infrastructure, a UK-based investment company, has agreed to sell its stakes in two school projects in Bradford for £37m, which is 8% higher than its last valuation. The deal is expected to be completed by the end of the year.
The projects, Bradford Building Schools for the Future (BSF) Phase 1 and Phase 2, are part of a public-private partnership (PPP) scheme to improve the quality of education facilities in the city. HICL had invested in the projects in 2009 and 2014, and increased its shares in 2021. The sale will generate an annual return of 11.5% and 14.1% for HICL, respectively.
HICL said the sale will improve its portfolio performance and demonstrate its ability to create value for shareholders through selective asset recycling. The company also said it had delivered positive social impact through its ownership of the projects, such as adding 50 places for students with special needs every year.
The proceeds from the sale will be used to reduce HICL’s debt, which is expected to be around £330m after the transaction.
Edward Hunt, Head of Core Income Funds at InfraRed, HICL’s investment manager, said: “This transaction builds on HICL’s long track record of delivering value enhancement through active asset recycling, and we continue to progress disposal opportunities where these deliver shareholder value.”
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