HICL Infrastructure sells University of Sheffield accommodation project for £18m

HICL Infrastructure PLC, a London-listed infrastructure investment company managed by InfraRed Capital Partners Limited, has finalized an agreement to sell its entire equity interests in the University of Sheffield Accommodation Project. The deal is valued at approximately £18 million. The sale’s proceeds slightly exceed the project’s last audited valuation as of 31 March 2023, positively impacting the 30 September 2023 NAV. This transaction showcases the strength and value of HICL’s portfolio, highlighting the disparity between public and private market valuations of premium infrastructure assets.

The completion of this transaction is expected before the end of the current year, contingent upon obtaining necessary third-party consents. The generated capital from this deal will contribute to reducing the balance on the Company’s £650 million Revolving Credit Facility (RCF). Post-completion of all announced disposals, the expected drawings on the RCF stand at around £115 million.

Edward Hunt, Head of Core Income Funds at InfraRed, commented on the transaction: “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.”

This sale is part of HICL’s broader strategy of actively managing and recycling assets, demonstrating their agility in navigating the fluctuating economic landscape. The successful disposal at a premium value not only reinforces the company’s robust asset management approach but also contributes to its long-term financial stability by effectively managing debt.