John Laing Infrastructure boosts growth with Barcelona metro investment

Helped by a first investment in Spain, John Laing Infrastructure Fund enjoyed a 13% increase in its net asset value (NAV) in the first quarter of the year and said it had a strong pipeline of assets to continue its investment plans.

The portfolio's underlying value grew 1.7% in the three months to 31 March to £973.5m on a rebased value of £957.2m due to distributions during the period and the depreciation of sterling versus the euro and Canadian dollar.

In absolute terms, the portfolio grew by £96.7m or 12.2%, driven by roughly £90m of acquisitions in the quarter.

NAV reached £1.0bn, including £27.8m allocated to May's dividend, up from the £883.1m at year end.

Directors announced a 1.04% increase in the dividend to to 3.41p per share for the six- month period to 31 December 2015, which they said was in line with UK inflation.

Acquisitions included its first investment in the Spanish secondary PPP market, a 40% indirect interest in the Barcelona Metro Stations Section II project.

JLIF also acquired a 100% stake in the British Transport Police project from John Laing Group plc and John Laing Pension Trust, with both purchases financed using debt from the revolving credit facility.

"There remains a strong pipeline of assets in which JLIF remains in advanced discussions with a number of vendors across several geographies," said Andrew Charlesworth, of the fund's investment adviser, John Laing Capital Management.

"The portfolio continues to perform well and we hope to grow this further in the future."

The advisers feel the UK operational environment, particularly in the healthcare sector, continues to require "careful and close engagement in order to operate the projects effectively".