HICL Infrastructure to sell Queen Alexandra Hospital to InfraRed EIIF 4

HICL Infrastructure said that it has agreed conditionally to sell its 100% stake in the Queen Alexandra Hospital PFI Project (QAH) in Portsmouth, England to InfraRed European Infrastructure Income Fund 4 (EIIF 4) for £108 million.

The conditional agreement follows a competitive auction process, said HICL Infrastructure with the sale aligning with its strategy to generate shareholder value and optimize portfolio composition via periodic disposals.

HICL Infrastructure made its investment in Queen Alexandra Hospital in 2010. The acute public hospital, which has more than 7,200 staff and 1,200 beds, caters to residents in Portsmouth and southeast Hampshire.

Queen Alexandra Hospital was constructed and then managed by Carillion plc. After Carillion plc was liquidated in 2018, HICL Infrastructure, through the Investment Manager, took over the responsibility for the construction and facility management risk related to the hospital project.

Ian Russell — Chairman of HICL Infrastructure said: “The disposal of HICL’s investment in Queen Alexandra Hospital is a tangible example of the Company’s business model in action. HICL, through its Investment Manager InfraRed, seeks to enhance shareholder value in the existing portfolio through active asset management to optimize portfolio performance and composition.

“The proceeds provide an alternative source of funds to rotate into the Company’s advanced pipeline. The Board unanimously recommends that Shareholders vote in favour of this transaction, as all the Directors intend to do in respect of their own beneficial holdings of Ordinary Shares.”

The deal is subject to receipt of customary approvals and HICL Infrastructure’s shareholders’ approval.