HICL Infrastructure PLC (LON:HICL) has announced that it 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.
· 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
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. 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.”
HICL Infrastructure is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
