HICL Announces Disposal of University of Sheffield Accommodation
for a consideration of c. £18m
HICL Infrastructure PLC
“HICL” or “the Company” and, together with its subsidiaries, “the Group”, the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited (“InfraRed” or “the Investment Manager”.)
HICL Announces Disposal of University of Sheffield Accommodation
for a consideration of c. £18m
· Sale represents a small premium to the Company’s valuation at 31 March 2023
· Transaction is accretive to key portfolio metrics and improves portfolio composition
· Continues HICL’s track record of delivering capital growth through active asset recycling
The Board is pleased to announce that HICL has entered into an agreement to dispose of its entire equity interests in the University of Sheffield Accommodation Project for a consideration of c. £18m. Proceeds from the sale represent a small premium to the Company’s last audited valuation at 31 March 2023, which has been reflected in the recently published 30 September 2023 NAV. This transaction is further evidence of the value of HICL’s portfolio and the disconnect between public and private market valuations for high-quality infrastructure assets.
Completion is expected before the end of the year, subject to customary third-party consents. Proceeds from the transaction will be used to reduce the balance on the Company’s £650m Revolving Credit Facility (“RCF”). Following completion of all announced disposals, drawings on the RCF are expected to be c. £115m.
Edward Hunt, Head of Core Income Funds at InfraRed said:
“This latest transaction takes the total number of disposals for the year to nine, evidencing our active approach to asset recycling and the Company’s ability to reduce debt in a value accretive manner, notwithstanding wider macroeconomic volatility.”