HICL Infrastructure disposes of seven UK PPP assets

(Sharecast News) - Infrastructure investor HICL Infrastructure said on Monday that it had agreed to dispose of a portfolio of seven UK public private partnership assets to Dutch pension services provider APG, for a total consideration of roughly £225m. HICL said the portfolio made up 50% of its investments in Southmead Hospital, and Pinderfields and Pontefract Hospitals, as well as its entire equity interest in four UK LIFT projects and Edinburgh Schools.

It also noted that the consideration included cash distributions received since 1 April and was in line with the last audited valuation of the assets. The majority of the consideration will be received on completion, with a small non-contingent deferred element of £14m due by 30 June 2026.

HICL said proceeds will be used to repay the £30m drawn from its revolving credit facility, fund £110m of investment commitments, and support its £150m share buyback programme, which has already delivered 1.8p of net asset value accretion.

Separately, HICL said it operational performance remained solid across the portfolio, with yield assets underpinning cash generation and growth assets progressing capex plans. Affinity Water and Texas Nevada Transmission both traded in line with expectations.

HICL also reiterated its covered dividend target of 8.35p for FY26 and 8.50p for FY27. With £725m of disposals announced over the past two years, HICL said it remains well positioned to pursue selective acquisitions and further buybacks, supported by a resilient balance sheet and stable cashflows.

As of 0840 BST, HICL shares were up 1.06% at 120.26p.

Reporting by Iain Gilbert at Sharecast.com