John Laing Infrastructure goes underground in Barcelona

John Laing Infrastucture Fund was going underground in Barcelona on Thursday, announcing it had completed the acquisition of 40% of the Barcelona Line 9 Section II metro project.

The FTSE 250 infrastructure investment company initially announced the acquisition proposal in December 2015.

Consideration of the acquisition was the equivalent of £85m. It was funded through a revolving credit facility and existing cash resources, the company said.

Following the acquisition, John Laing Infrastructure was £84.5m drawn on its credit facility.

"This acquisition is an example of the great opportunities for John Laing Infrastructure Fund that exists across the developed European market, and which will allow us to create further value for investors", said Andrew Charlesworth of John Laing Capital Management, which advised on the investment.

"This project is low risk, in line with our investment criteria, and has more than 27 years remaining, therefore providing John Laing Infrastructure with a significant long-term source of income", Charlesworth added.

Line 9 runs directly through Barcelona's city centre, connecting the airport with the port district.

The stake taken by John Laing Infrastructure was previously held by Iridium Concesiones de Infraestructuras, a subsidiary of Grupo ACS. Iridium would continue to hold a smaller stake in the project, John Laing Infrastructure's board said.