Hicl Infrastructure Share Discussion Threads

[schofip] 21/4/2015 16:57

Dont believe any of the ADVFN Trades data. I bought 2 tranches of 20K of shares today and they both appeared as Sells on the Trade page.

[madengland] 14/4/2015 12:02

Yeah agree. I am surprised the share price grew so much concurrent with the ftse. Think this will look increasingly good value over coming months as this bull market wanes and if the recovery stalls post election.

[yam114] 14/4/2015 10:03

Nav is about 130.00
Can't think share price will go much lower is doesn't normal fall back much I'm looking to top up soon.

[skinny] 14/4/2015 07:02

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition from Hochtief Solutions PPP (UK) Limited, a subsidiary of Hochtief AG, of further equity interests in two of its existing projects, namely a 40% interest in the Salford & Wigan Phase 1 BSF1 Project ("S&W Phase 1") and a 40% interest in the Salford & Wigan Phase 2 BSF Project ("S&W Phase 2"), for a combined consideration of £16.0m. As a consequence of the acquisitions, HICL now holds an 80% interest in each project.

S&W Phase 1 and S&W Phase 2 are 26-year and 27-year PFI concessions, respectively, to design, build, finance, maintain and operate five new secondary schools in Salford and Wigan, Greater Manchester on behalf of Salford City Council and Wigan Borough Council. S&W Phase 1 was signed in 2010 and has been fully operational since 2011, while S&W Phase 2 was signed in 2011 and has been fully operational since 2013. Construction of both projects was undertaken by Laing O'Rourke Construction, a subsidiary of Laing O'Rourke Plc. The provision of hard and soft FM services, including catering, are undertaken by SPIE Facility Services Limited, a subsidiary of SPIE SA Group.

The acquisitions are funded by drawings under the Group's revolving credit facility and are in line with the current valuation of similar UK infrastructure projects in the Group's portfolio.

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[schofip] 13/4/2015 10:54

There has recently been quite a lot of selling in this stock. Anyone got a view on why and where they could end up. I sold out completely at 160p and looking for a sensible re-entry point. I guess there must be some political risks here with the election coming up. Anyone know what the Net asset value is?

[skinny] 13/4/2015 07:14

Notice of Annual Results

HICL Infrastructure Company Limited, the listed infrastructure investment company, advises it plans to announce its annual results for the year ended 31 March 2015 on Thursday 21 May 2015.

There will be a meeting for analysts at 9.30am on 21 May 2015 at the offices of the company's broker, Canaccord Genuity Limited, 88 Wood Street, London EC2V 7QR.

[skinny] 01/4/2015 07:06

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce a new investment of €11.5m for a 75% interest in the Zaanstad Penitentiary Institution PPP project (the "Project") acquired from a subsidiary of Ballast Nedam BV ("BN"), which signed on 31 March 2015.

The Project comprises the construction and 25-year operation of a new penitentiary institution in Zaanstad, the Netherlands. The Project is governed by a Design, Build, Finance, Maintain and Operate Agreement with the State of the Netherlands and has tenure of 27.5 years.

The facility, which is currently being built, will have a capacity of approximately 1,000 detainees, and includes a labour centre, a psychiatric care institute, a recreational facility, offices and healthcare facilities. The complex is being built on a greenfield site of flat land in a polder area, right next to the North Sea canal. Construction commenced in April 2014 and the project is scheduled to be operational in March 2016.

The obligations relating to both the delivery of the construction works and of the facilities management services have been sub-contracted to a single sub-contractor formed by subsidiaries of the Ballast Nedam group and the Royal Imtech group. Custodial services do not form part of the Project's scope of services.

The consideration of €11.5m comprises an investment in shares and a loan stock subscription obligation payable following construction completion. The acquisition is in line with the valuation of similar construction infrastructure projects in the Group's portfolio and was funded by way of drawings under the Group's revolving credit facility.

The Group has also recently completed the acquisition of an additional 12% equity and loan note interest in the Newham BSF project from RM Plc for £1.6m. This takes the Group's total interest in this project to 80%.

Tony Roper, Director, InfraRed Capital Partners Limited said:

"We are delighted to have completed these acquisitions, in particular the project from Ballast Nedam, which represents HICL's second investment in Holland. We are pleased with the Project's construction progress and we look forward to working with both Ballast Nedam and Royal Imtech with a view to delivering the Project on time, and to future opportunities that may arise in the region."

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[skinny] 12/3/2015 07:05

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition from Laing O'Rourke Plc ("LOR") of a 40% interest in the Salford & Wigan Phase 1 BSF[1] Project ("S&W Phase 1"), a 40% interest in the Salford & Wigan Phase 2 BSF Project ( "S&W Phase 2") and a 68% interest in the Newham Schools BSF Project ("Newham") for a combined consideration of £26.4m. Details are as follows:

· S&W Phase 1 and S&W Phase 2 are 26-year and 27-year PFI concessions, respectively, to design, build, finance, maintain and operate five new secondary schools in Salford, Greater Manchester on behalf of Salford City Council. S&W Phase 1 was signed in 2009 and has been fully operational since 2011, while S&W Phase 2 was signed in 2011 and has been fully operational since 2013. Construction of both projects was undertaken by Laing O'Rourke Construction, a subsidiary of LOR. The provision of hard and soft FM services, including catering, are undertaken by SPIE Facility Services Limited, a subsidiary of SPIE SA Group;

· Newham is a 27-year PFI concession to design, build, finance, maintain and operate two new secondary schools in Newham, London on behalf of the London Borough of Newham Council. The project was signed in 2009 and has been fully operational since 2010, with construction carried out by Laing O'Rourke Construction. The provision of hard and soft FM services, including catering, is undertaken by Mitie PFI Limited, a subsidiary of Mitie Group Plc.

The acquisitions, which are funded by the Group's current cash surplus following the sale of Colchester Garrison MoD PFI project, are in line with the current valuation of similar UK infrastructure projects in the Group's portfolio and take the number of investments in the Group's portfolio to 100.

James O'Halloran, Investment Director, InfraRed Capital Partners Limited said:

"We are delighted to have completed the acquisition of these fully operational schools projects from Laing O'Rourke and we look forward to developing our relationship with Laing O'Rourke with a view to sourcing additional investment opportunities for the Group. We are pleased with the schools' build quality and the projects' operational performance. We look forward to working with all stakeholders to ensure the projects continue to deliver the high level of services and facilities expected."

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[jonwig] 11/3/2015 07:19

Are they switching to more early-stage projects no that completed ones are getting more expensive?

[skinny] 11/3/2015 07:08

New UK Investment in Schools Building Programme



HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce a new investment of £7.2m, being a 45% interest in the Priority Schools Building Programme ("PSBP") North East Batch Project (the "Project").

The Project, which has a capital value of £103m, reached Financial Close on 10 March 2015 and, once constructed, will comprise six new-build secondary schools and six new-build primary schools.

The Project is part of the wider PSBP, a centrally managed programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 260 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA).

PSBP Private Finance is procuring the design, build, finance and operation of 46 new schools in 5 geographic areas ('batches') across England. Each privately financed batch will be procured under the Private Finance - model 2 (PF2) framework, and the Project is the first privately funded project to close under this new model.

The construction works will be undertaken by a subsidiary of Galliford Try Plc over a period of 18 months from financial close, and will comprise the demolition of redundant buildings and the construction of the new schools.

Hard FM services will be provided by a subsidiary of Galliford Try Plc over a 25-year period under a concession contract, as well as lifecycle replacement for the buildings' fabric and services and certain furniture, fittings and equipment.



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[madengland] 24/2/2015 09:07

Thanks Jonwig. I appreciate the post. Just found the HICL NAV in all the text....Overall the NAV per share increased by 7.4p, after deducting the second quarterly interim dividend, to 130.5p at 30 September 2014 (31 March 2014: 123.1p). There were a number of factors contributing to this greater-than-expected growth, the largest of which (uplift of 3.0p per share) was the revaluation of certain investments, including the investment the Group has contracted to sell and the reduction in the weighted average discount rate (uplift of 2.0p per share).

[jonwig] 24/2/2015 09:02

GCP work differently - they provide loans to companies undergoing infrastructure projects, usually smaller in scale than HICL's.
Hence GCP as a pretty good idea of future income and can provide a NAV at a mouse=-click ... nearly!
And don't forget that HICL's revenues are largely index-linked.

[madengland] 24/2/2015 08:59

Ps I appreciate GCP is a different beast in many respects, my question is vis a vis HICL nav and current yield.

[madengland] 24/2/2015 08:56

I've been watching this for a long time waiting for an opportune moment to get back in. However with the yield where it now is and the unbelievable growth in share price given the asset class I can't help wondering if it's a tad overdone. I have put some funds into GCP that yields better by nearly 2%. GCP give a Nav every month, where to HICL give a NAV and how do holders square off the stellar share price return that has prevented me from wanting to buy back in. (This is not a cheap attempt at de ramping).

[jonwig] 23/2/2015 07:24

For those of us with poor head for heights, parts of this are reassuring, such as:

... will continue to exercise investment discipline. Although this approach may moderate the rate of asset growth, it serves to safeguard the level of return from the Group's portfolio.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I haven't been paying attention to "Base Erosion and Profit Shifting" - silly of me!!
Has HICL been fiddling on its taxes?

for enthusiasts.

[skinny] 17/2/2015 07:06

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce a new investment in France, being the Ecole Centrale Supelec PPP Project ("Project") in which the Group now has an 85% ownership interest.

The Project reached Financial Close on 16 February 2015 and consists of the design, construction, finance and maintenance of a new facility for the Ecole Centrale Supelec on plateau de Saclay, near Paris, as well as a shared teaching and research facility, an underground carpark and a hotel facility (the revenue from which does not form part of the Project).

The Project will be built by Bouygues Batiment Ile de France and will take approximately 2 years to complete, with an operational period of 26 years from construction completion. The FM contract will be with Bouygues Energy & Services, which will also assume the lifecycle management risk.

The total consideration for the investment is €3.4m, comprising a loan stock subscription obligation payable upon construction completion.

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[hiddendepths] 02/2/2015 13:48

Thanks jonwig - useful info.

[losos] 02/2/2015 12:29

jonwig - "The year 2043 shows its ultimate demise."

I think my ultimate demise will be before that ha ha !!!!! of course (just like HICL) I could have some partial demises on the way.

[jonwig] 02/2/2015 11:56

HD - yes, valuations need to be explained by the companies.

We hold GCP as well - also JLIF. You'll probably have seen that John Laing PLC is floating next week (with PI included). I've put some comments on the JLIF thread about these and may well apply.

You say how little known infra stocks are, but they are big favourites with wealth managers (Brewin and Chas Stanley own a lot for clients).

[jonwig] 02/2/2015 07:19

So HICL sells its stake in Colchester barracks for 25% more than its 2014 valuation.

This follows 3IN's disposal of its Eversholt stake for 50% above, and BBY's revaluation of its infra portfolio by 50% upwards. It's tempting to think these companies should rethink their valuations across the board, in which case the current share price premiums will vanish.

Or, perhaps, the share prices will rise accordingly?

[skinny] 02/2/2015 07:18

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group") announces that the Group has sold its 56% equity and subordinated debt interest in the Colchester Garrison MoD Project ("Colchester") to subsidiaries of Allianz Group, the PPP Equity PIP limited partnership, and Dalmore Capital Fund II limited partnership (both partnerships managed by Dalmore Capital Limited).

The decision to sell was taken following the recent disposal by a co-shareholder of its holding in Colchester. This disposal was undertaken by way of a competitive tender process, and it provided a benchmark value for the Company's interest in Colchester which the Board considered to be significantly ahead of the value that could be achieved by retaining the project. The Board will always consider and evaluate potential disposals which are in the best interests of shareholders.

The sale of the Group's holding in Colchester constitutes the contracted disposal to which reference was made, on a no-names basis, in the Company's interim results in November of last year.

The profit on disposal, after costs, is £21.7m over the Directors' valuation of £86.6m as at 30 September 2014. After repaying the Group's revolving debt facility, drawn to make investments since 30 September 2014 (as previously reported), the Group currently holds approximately £25m of cash which is available for new investment opportunities.

The Company intends to update the market in February with respect to current portfolio performance, market dynamics and trends in market valuations for infrastructure assets of the type owned by the Group.
Tony Roper, Director, InfraRed Capital Partners Limited said:

"Following receipt of very attractive offers for this asset, the Board concluded that, rather than exercise the Group's pre-emption rights, it was in shareholders' best interests to sell and re-invest the proceeds. We continue to evaluate a pipeline of suitable investment opportunities and are confident of being able to re-invest this capital."

[skinny] 15/1/2015 07:06

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce the acquisition of further equity interests in two of its existing projects, as follows:

· 50% of the share capital and all of the remaining loan notes in the Willesden Hospital PFI Project. (Completion of the acquisition of £0.7m of the loan notes is deferred until 2019).

· 15% of the share capital in the Barking and Dagenham Schools PFI Project.

Following completion of the acquisitions, the Group will hold 100% of the equity interests in each of the projects.

Willesden Hospital PFI Project is a 32-year concession for the design, construction, financing, maintenance and operation of a community hospital in North London. The project was signed in December 2002 and has been fully operational since April 2005.

Barking & Dagenham Schools PFI Project is a 27-year concession for the design, construction, financing, maintenance and operation of two new secondary schools in East London. The project was signed in March 2004 and has been fully operational since August 2009.

The consideration paid by the Group for both incremental investments, which amounted to approximately £8.1m in aggregate, is in line with the current valuation of similar UK social infrastructure projects in the Group's portfolio and was funded by way of drawings under the Group's revolving credit facility.

David Foot, Director, Infrastructure, InfraRed Capital Partners Limited, said:

"Both projects have performed well over recent years and we are pleased to be able to continue the strategy of increasing the Group's ownership of existing projects when suitable opportunities arise."



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