HICL takes 10 per cent interest in Irish PPP road scheme

6th May 2014 08:31

HICL Infrastructure Company has taken a 10 per cent interest in the N17/N18 Gort to Tuam public-private partnership (PPP) scheme in the Republic of Ireland.The project is for the financing, design, construction and operation of a new 57km dual carriageway section of the N17/N18 near Galway for the National Roads Authority of Ireland. Under the agreement, HICL has agreed to subscribe for 10% of shareholder loans at the end of the construction works and has signed a conditional commitment to acquire a further 32% interest in early 2019.David Foot, Director of Infrastructure at HICL's investment advisor, InfraRed Capital Partners, said: "We are pleased that InfraRed's relationship with Strabag has given the company the opportunity to invest in a new road project in Ireland supporting the development of the country's infrastructure. "This is part of the group's stated strategy of holding a small proportion of investments in their construction phase."The adviser was confident in its ability to increase the group's shareholding in the N17/N18 project.HICL also announced the acquisition of a 16.5% stake in the Miles Platting Social Housing public finance initiative project in Manchester. The 30-year concession is for the re-design and refurbishment of around 1,500 occupied properties. The group's share price climbed 0.63% to 136.96p by 08:50 on Tuesday. NR