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HICL Infrastructure PLC on Thursday announced the disposal of its entire interest in the Queen Alexandra Hospital PFI project to InfraRed European Infrastructure Income Fund 4 for £108 million.
HICL Infrastructure is a long-term investor in infrastructure assets and is managed by InfraRed Capital Partners. PFI stands for private finance initiative, a way for public sector projects to be financed by the private sector.
HICL said the profit from the sale will increase its net asset value by 1.5 pence per share.
Queen Alexandra Hospital is an acute public hospital with over 7,200 staff and 1,200 beds. It serves over 675,00 residents across Portsmouth and south-east Hampshire in England. HICL invested in Queen Alexandra Hospital in 2010.
Proceeds from the sale will go towards HICL's pipeline.
‘The disposal of HICL's investment in Queen Alexandra Hospital is a tangible example of the company's business model in action. HICL, through its investment manager InfraRed, seeks to enhance shareholder value in the existing portfolio through active asset management to optimise portfolio performance and composition,’ said Chair Ian Russel.
HICL took on the responsibility for the construction and facility management risk associated with the project in 2018.
‘By working collaboratively with all the key project stakeholders, the investment manager was able to successfully stabilise and de-risk the project,’ HICL said.
InfraRed's active asset management strategy for the hospital over the last four years is a key contributor of the uplift in NAV per share recognised on disposal, HICL said.
The sale will see long-term continuity of InfraRed's management of the asset, the company added.
The acquisition still awaits the customary approvals as well as HICL shareholder approval.
HICL shares were up 0.5% to 177.80 pence each in London on Thursday morning.
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