HICL Infrastructure ups stake in Sheffield schools project

HICL Infrastructure Company has acquired an incremental investment in the Sheffield Schools private finance initiative project with its joint venture partner, Kajima Partnerships from the Kier Group Pension Scheme for £4.1m.

HoldCo, the JV holding company in which HICL has a 75% shareholding, previously owned a 50% interest in the project.

Following the transaction, HoldCo owns 100% of the project, lifting HICL’s indirect ownership to 75% from 37.5%.

The project, which was signed in 2005 and has been fully operational since 2007, is a 26-year PFI concession which involves the design, construction, financing, maintenance and operation of two new primary and two new secondary schools on behalf of Sheffield City Council.

HICL said the consideration it paid for the investment is in line with the current valuation of similar UK social infrastructure projects in its portfolio and was funded from existing cash resources.

Following the deal, it has net funding requirement of around £7m.